1973 20' SF - Engine Trouble?

[StrangeBrew]

Gents....Thanks for all the advice...Well, my mechanic pulled the head off and this is what's going on (as reported by my father):

"John removed the head and it appears the "o-ring" (this is the ring that seals the head to the block...60 degree V4's dont have head gaskets) is bad and water was leaking into the top section the cylinder in a small area about 3/4" long and 3/8" deep. I have cleaned up the surfaces of the head and the block and John is getting new "o-rings". I did another check after the head and block was cleaned. I raised the piston to the top position and using my feeler gauge stock I was able to insert .002" between the ring and the cylinder wall in two spots. It is strange since the area that was damaged from the water was tight and these two other areas where to the left and right of that section. I will lower the piston to the half way point in the morning and check it again in an area that was not damaged by the water. This is not good an would be the cause of the low compression. Not sure what can be done other than to remove the piston, hone the walls and insert new piston and rings. Will check with John in the morning once I learn more."

I think I will hone the wall of that cylinder, new piston, new piston rings and replace the "0-ring" between the head and block...What do you think?