1) The rubber doohickeys on the B18 are what they used in lieu of a real valve stem seal underneath the springs, on top of the valve guide. I'm not exactly sure how it ever really did much of anything. Certianly not needed if the head hads real valve stem seals, as all B20 heads did. And I think it's rpetty easy to modify a B18 head to use them as well.
2) Well worth the effort to put those on. It's easier to pull the valve spring when the head is off and you can more directly hold the valve up.
3) Most certainly. A burnt valve, or a valve that isn't closing completely will lower compression. Typically, the way to rule out leaking rings vs. something else is to test the comrpession 'dry', then quirt in some oil and test again quickly. the oil will settle in on the top of the piston and make a good temporary seal in place of the rings, so if the numbers go up significantly, it's the rings that werte leaking. If they stay the same, it's 'something else'. Which could be holed piston, cracked block, cracked cylinder head, bad HG, bad valve. To diagnose between those, you need to get a hose fitting and blow compressed air into the cylinder (make sure it's at BDC or it will go there, back off the valve adjustments as needed to ensure both valves are closed on the offending cylinder) and see where it leaks to. Intake manifold, exhaust manifold, crankcase, cooling system. But a valve with enough problems to cause a significant drop in compression shuold either be very, very tight (held open slightly) or have very visibly evident problems when you remove the spring and look at the mating valve/valve seat surfaces.
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'63 PV544 rat rod, '93 Classic 245 + turbo
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