Follow-up
I removed the head and the pistons. The engine is extremely clean inside. No sludge at all. The head gasket looked good - no sign of a blow out. No obvious problem with the head like cracks or burned valves. The cylinder ridges were composed mostly of carbon and after using some emery paper, the pistons came out easily without using a ridge reamer. None of the rings were stuck or broken. The ring lands were in perfect shape and the ring to land clearance was in spec. The was no scoring on the cylinders and no galling or scoring on the pistons.
Off to Harbor Freight to buy a set of Mics, telescoping guages, and a digital caliper. I must say I'm impressed with the quality for the price. The 6" caliper was only 10 bucks with the Inside Track coupon and it is accurate to .001" as advertised and compared to the mics and the mike standards. I was shocked!
The cylinder taper was minimal and within spec for all cylinders. The piston skirt measurement was within spec, as were the conecting rod bearings and crank journals. Now I'm beginning to worry that I can't find anything wrong. I put the used rings back in the cylinders to check the end gap. Each gap was approximately 1/8" or .125". The spec calls for new rings to be .008 to .016 with the maximum allowable .059 - Bingo! Worn rings as suspected.
I honed the cylinders with a flex hone which worked great - a nice 45 degree crosshatch pattern. The end gaps for the new rings were all .008 to .016 per spec. I installed the new rings, new rod bearings, and sent the head to a machine shop for a valve job. Three new intake valves were required, as each had a wear ring on the face and the valve would be too thin if ground. The valve guides and exhaust valves were good. The head flatness was out .005" so it was resurfaced. Talking to the machinist, he thought the ring and intake valve wear were caused by the engine being run at some point in dirty conditions with a damaged or defective air filter.
I got the whole thing assembled yesterday, bled the fuel system, and it started quickly on the first attempt and ran perfectly!
Costs:
Machine work $270, parts $550 but $220 was for a new injector that the machinist ruined getting it out of the head. I could't remove it with a slide hammer puller and he ended up heating it with a torch and damaging it to get it out. All parts were from the John Deere dealer. Tools $300 including a 2 ton engine hoist.
Hopefully, it will last a long time.