I agree with ckau-nastiest,corroded,rusted motor internally I've ever seen.Only way I'd tore it down after looking at the valves would've been if it was an OLD RARE engine. Taking a compression test/reading prior to disassembly would've answered all your questions!! My next biggest concern looking at this engine before tear down would be if the jug is warped- that's a lot of cooked oil at the base.
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