I have been struggling with this engine for a while and a couple of weeks ago finally bit the bullet. I pulled the head checking the valves and guides. The valves were pocketed and the guides were really worn. No wonder it used oil! Guides are easily driven out of the head wth a drift. Pulled a piston seeing the rings tarred in good to the lands. I decided that I would try the bandaid approach. With all the pistons in carb cleaner for 3 days and numerous scrapings the lands were finally clear. A quick hone with the brush hone and new rings, rod bearings, as well as new guides, reamed by moi, and the seats set up with a Newway cutter (does that work slick!) as well as all new valves, (they are cheap compared to motorcycles) has this engine finally running the way I wanted it to. The tooling to do the valve seats and hone cost $400 but that is what I would have paid some shop to do the same and I am certain that they would not be using the precision carbide cutters. The car went together on Tuesday with a quick test drive and today I hauled the landcruiser tranny to a rebuilder over 400 km away for over 800 km round trip at around 115 kmh to yield 55.6 mpg. Sorry for the conversions but I still work fuel efficiency in mpg. It used less that a litre of oil too which was the reason I started all this in first place as I was using a liter/250 km. The engine temperature was also better as I suspect the blowby and fuel from the oil leaking through the guides was an issue before. Gaskets, valves, guides. bearings and rings totalled out at about $400. And then the tooling was another $400 but I will always have that and now can go ahead and do the other engine in the car that I bought for parts. The local shop quoted me $260 + taxes to do the head with me supplying all the guides and valves!