Fixed the head gasket a few weeks ago. It quit running well enough to move itself.
Exactly as the compression check showed, had bad head gasket. Took the head to the machine shop to be machined, without a really good straight edge to check I would guess they knocked off as much as 6 to 10 thou but the cranky ass old lady at the counter wouldn't say.
I also replaced the old spark plugs. Inside the ceramic was rusty, and several exploded when I used an impact to remove them from the head in the parts washer. One popped like a firecracker.
I spent hours with a wire brush on a drill cleaning carbon off of the block deck, around the valves, the piston tops and around the top of the bores.
All the threads were chased on the block and I used a sealant on the 30 something bolts as many of them go into the water jacket.
The loader is back in business, finicky as ever to get started, but good power and way less smoke.
