I would NOT run straight Marvel mystery oil in the crankcase, but it would be O.K. to substitute one quart of engine oil for one quart of MMO or ATF. Doing so would probably not help very much though. The smoking at idle is most likely because of worn valve guides which need to be replaced. There are no valve seals unless someone has added them in an attempt to cure the worn guides. The fact that the compression raised by 10 pounds when you added oil to the cylinders tells me there is a piston ring problem also. Your engine is telling you that it is getting tired.
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Today's Featured Article - Fabrication (Who Me? Make it myself?) - by Chris Pratt. First of all, what are the reasons for not fabricatin your own parts? Most judgements on what should be purchased rather than fabricated stem from: Originality - If the tractor restoration is to be 100% original, it is likely that you should spend the time and money to locate the component in the used or New-old-stock market. Since this can be extremely difficult, you may want to fabricate the item or purchase a modern replacement temporarily, but eventually, you s
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