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Hi Dean, yes, head gasket was intact, no signs of antifreeze or anything out of the ordinary. I'm still trying to see if I can put the carbureted cylinder head instead of the FI one. A little story behind this rebuild. This engine/car had been running fine, with no problems whatsoever. I found a Turbo set up, intake manifold, weber carb and turbo. I was able to set up the turbo but after a couple of tries, I decided to put that to the side. The engine ran with the turbo but I was not able to drive the car. Not sure if this is what caused the problem I'm having now. Once I put everything back together, that is when I had the issue with no compression on number 3. I changed the FI cylinder head to the carbureted one and did the same thing, no compression on number 3. This is when I found there was antifreeze in the oil pan. Since I found antifreeze in the oil pan, I figured to have blown the head gasket while running the turbo. Decided to do a rebuild, new piston rings, bearings, new head gasket for the FI cylinder head, etc. When I put the engine back together, the cam lobes appeared fine, although I did not thoroughly inspect them, everything "appeared" intact. Nothing broken, just the head gasket seemed to have leaked antifreeze into the oil pan.
I'll see if the carbureted Cylinder Head works and come back here to post the results. If it works, I suspect is a valve or valve spring. I wanted to use the FI cylinder head as the car feels has more power with it.
Thank you everyone for all the input.
Luis
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