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[T3] How far should I go? (engine dismantling)


The Background:

The engine in our daily driver Squareback (beige) is acting funny.  The
left head is popping and I tightened up the lower head nuts, but have not
touched the top ones.  There is more oil seeping out the bottom and Diane
says the oil light comes on during braking and sometimes glows while
driving if she takes it on trips over 15 miles.

It also runs rough and looses power after running at highway speeds for a
few miles.  The points are good, but I haven't checked the compression yet.

Basically it appears the engine is getting tired and I should do something
about it.

Engine #2:

We also have a spare '71 Squareback (green) with a somewhat unknown engine.
 Stuart Neil had this car for awhile then drove it down to our house last
year to put on a new/used muffler.  On his way back the engine 'died' on
the highway.  He left it overnight and then the next day resuced it.  The
engine started and ran, but had no power.  He towed it home and parked it.
I acquired this car when we bought our '72 Bus from him.

Today I pulled the engine and tranny from the green car.  I have no idea
what is wrong with the green engine, but my plan is to rebuild this engine
and then swap it into the beige car.

How Far Should I Go:

The green engine is now on my work bench.  I've taken off the heater boxes
and muffler and pulled the vavle covers.  The cooling fan is lot loose
which I've been told is good news.  The engine turns over just fine (by
hand.)  I took a quick check of the valve clearance and #3 and #4 are both
tight, but #1 and #2 are fine.

Should I do a compression test on this engine before I go much further?
Should I just pull the heads and have a valve job done on them?  I'm kind
of hoping the bottom end is okay and all I have to play with are the heads.

I'm still not sure what happened to this engine and at this point I haven't
uncovered any clues to the problem.

Thanks
Dave Burden

ps - how do I remove the rear fan enclosure after removing the fan and all
the 10mm bolts holding it on?

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