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Dan, is that squeak when you're turning it by hand/screwdiver or on the starter? If it's turning easy with the plugs out, it's moe like a valve stuck shut than one stuck open. When I "saved" by BN, ithad a can over the pipe on the manifold. The head was full of water (which might not be a bad thing, except it wasn't in the water jacket!) as were #1 and #3. #2 and #4 were full, too, except they were so near top thst it wouldn't be fair to call them full, but it gives you an idea how far down the other two were. Rings on them were siezed right to the sleeve. But, like your engine, the bottom end was dry --no water, only some nasty oil. You're better off than than I was, but I'll give you dollars to donuts your problem is gonna be the same as mine only you got to yours earlier than I did mine. I'm suspecting valves stuck shut (either on the seats or in the guides) in the head, and mebbe (I'm still thinkin' about that squeak) that you've got a busted ring or two. Probably more than you bought in for, but not at all unsalvageable for not unreasonable expense, and it can make for a good project. And you'll have a real handy tractor when you're done. I hope you stick with it. Keep us posted.
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