Thanks for the info.
To answer some questions:
I did a compression test and came up with virtually no compression on a dry test. The leakdown gave me 90psi which indicates rings.
No sign of a bad headgasket.
I have oil entering the combustion chamber.
I'll definately be checking the head over thoroughly when i remove it.
"Then a ball hone and a band ring compressor and you're set".
Bob, what's a ball hone and what would i use it for? (still doing my homework)