type 1 inspection/refresh

[DjEep]

I bought an engine for $200 a few weeks back, supposed only problem was a "pulled head stud causing comp loss @ high RPM". PO was kinda dense and didn't seem like a great mech, but brand new head on the left side made it worth it, I thought. Got it to tinker on anyway.

So...

Taking it apart I find that the "pulled stud" is likely the fact that none of the bottom four nuts on the right head were tight. (three came off with my fingers!) and there is evidence of blow-out around the head/cyl mating surfaces.

My main Q right now is:
There is a lot of oil in 3 & 4. I know it sat for a while with oil still in it. Normal? Or evidence of toasted rings or something?

Oh yeah, and as testament to his fine mechanical skills, the PO decided to tourque down the #1 plug in the new head SIDEWAYS! like / instead of |.