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OK tore it down again, talked to a mechanic who said it might be an issue with the piston hitting the valves. Took it apart looked at the head and the piston and it looks pike the piston is coming a bit to far out and hitting the head (wear not on valves but the area around it appears to be where the piston is pushing into the head. I was advised to try and put a second head gasket in to increase clearance.
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