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Dear Metallo,
You wrote:
"The only thing I am undecided to venture in is the valve lapping, it adds lots of work for me, as I have never done this before, and I am not sure if I have all the necessary tools to do it."
At least do the test prescribed by Volvo From Heck. Before starting the test, select which pair of valves to close first by turning the camshaft manually. Pour gasoline on the closed valves to see any gasoline leak at the intake/exhause ports. Let the gasoline pool (stay) about 5 minutes or more before deciding any leak or not (common mistake most people do this rather quickly without giving some time). Lots of youtube video on this.
You wrote:
"I tried CRC and a paint stripper, but to no avail. It is really dry and stuck to the block."
You need to use a box cutter blade. Only use the blade, chuck the handle/blade-holder away. Lay the entire blade's sharp edge FLAT on the non-gasket portion at water pump area, then work the blade (at an angle not perpendicular) through the stuck gasket. You could snap the blade shorter if its too long to get into the work area.
Don't use art-knife (too pointy, might score the surface) or shaving blade (too fragile, might break causing injury)
Amarin.
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