So, an autopsy confirmed my fears, valves are sticking intermittently. More followers fell out simply cranking by hand, valves are definitely stuck open today. Guides look really bad. Doesn't look like corrosion, more like deposits from the bad fuel. Deposits have the consistency of partly cured JB weld, and stink. So.... Lesson learned. No matter how well an engine was stored, a decade is too long to sit. Could have gone thru the fuel system and probably saved a lot of headaches. Learn from my mistakes.... Spent my lunch break tearing it down with high hopes too. Lol
Good news is that I have plenty of experience working on engines, have a machine shop at my disposal, and found a REALLY good parts guy for vintage subies (Viva la socal). So, all is not lost, only postponed.