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"On another note, I've heard some that rebuilding the head with new valves on an old motor - in this case 327k IS OLD - may cause problems with ring sealing and lead to oil blowby. Anyone else have a take on this."
I've heard that too. If it were my car with 327K I'd probably just keep driving it. Most I would ever consider doing would be a new head gasket and plane the head. Maybe valve seals but only if they were leaking badly.
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95 855 GLT Sportwagon 215k, 90 244 DL 300k - after 10 years has a new home
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