If a lifter was indeed seized in the extended position, then the valve might not close. If that's the case you would have lower compression, but also if that's the case it's likely you may now have a bent valve because of the low clearance.
If a lifter was seized in the retracted position (no oil and fully compressed) then the valve would never open. I could see how that might give a lower reading due to a cylinder not being able to fill properly, but I really don't think it's very likely.
At this point I would do another leak down test to see if the valves are sealing correctly. As you're doing it I would watch the valves and make sure they're actually opening.
If the valves are working correctly and sealing correctly, I'd think it's time to pull the motor and re-ring it. I understand you're trying your best to avoid that, but if that's the issue then it'll need to be fixed.
Very important question you haven't yet answered yet is :
What did you mean by this??? If you have cavitation the block needs to be sleeved or replaced. If you meant rust pitting then that's fine.
This lends itself to a piston ring problem. Some blowby is normal, but your compression numbers are far below normal.
Odds are if your cam was in that shape the crank isn't much better, especially from having water in the oil. Even if you get it running, it may not last long. I'd want to inspect the crank bearings and journals and see what shape they're in. Hopefully you'll get lucky, but I'd hate to have all that work done and then spin a bearing.
If a lifter was seized in the retracted position (no oil and fully compressed) then the valve would never open. I could see how that might give a lower reading due to a cylinder not being able to fill properly, but I really don't think it's very likely.
At this point I would do another leak down test to see if the valves are sealing correctly. As you're doing it I would watch the valves and make sure they're actually opening.
If the valves are working correctly and sealing correctly, I'd think it's time to pull the motor and re-ring it. I understand you're trying your best to avoid that, but if that's the issue then it'll need to be fixed.
Very important question you haven't yet answered yet is :
There was a couple cavitation spots in 2 cylinders but nothing serious
What did you mean by this??? If you have cavitation the block needs to be sleeved or replaced. If you meant rust pitting then that's fine.
I can smell and see the misty diesel fuel shooting out of the crankcase, oil fill hole
This lends itself to a piston ring problem. Some blowby is normal, but your compression numbers are far below normal.
I even got a new camshaft because old one was pitted
Odds are if your cam was in that shape the crank isn't much better, especially from having water in the oil. Even if you get it running, it may not last long. I'd want to inspect the crank bearings and journals and see what shape they're in. Hopefully you'll get lucky, but I'd hate to have all that work done and then spin a bearing.
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