Got the motor out and mostly disassembled. This is what I've found so far;

between cyl. 1 and 2

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between cyl. 2 and 3

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Might be difficult to see, but there are cracks bridging the three small passages to the head bolt seat. Although these don't appear to be bridging the cylinders themselves, they look ominous. What are your thoughts?

The cylinder walls in #1 (cylinder with poor compression) look to be in good shape to me. No major scoring or gouges etc. Although the piston can "wiggle" a bit. Not sure of the tolerances here yet.

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