No other sign unfortunately. I probably jumped the gun on tearing into it, but didn't want the problem to get any worse.
Yeah, you probably jumped the gun. But no harm done and everyone works differntly.
Interestng about the breather oil puddle. If it ran good before and you tore it down for that breather oil then maybe back up to the compression test and put some thought into it .
Here is a compression test sheet from a service school. This is Yanmar, but should apply equally to your engine or any 23:1 compression diesel.
From what you are saying about your compression test you might read the sheet and ask if you have questions about doing one or interpreting the results.
I use a hand-held tach and stopwatch to check cranking speed when I do a compression test.
BTW, oil out the breather is generally due to overfill, really worn bores, or a hydraulic pump seal, or one of several one-way valves - not the advice you got at all.
That story about ring gaps lining up is an old mechanic's tale and debate that is older than I am. It is always good for a beer conversation but nobody really knows the answer. We can explore it if you want and discuss why some rings are pinned, some rotate, and where ring/bore/piston wear happens and why
Also, the info you got about adjacent cylinders is flat wrong. Adjacent cylinders are on different strokes and valve overlap means a head gasket blown between them doesn't usualy pass pressure to the crankcase unless the bores are really worn.
And since a compression test is always done on all cylinders, you would see any blown gasket between adjacent cylinders during the compression test anyway. You cannot miss it. In fact, that is just about the most basic thing a compression test looks for.
Oh, another thing. With the head off it is easy to measure the bores and check for wear. You might want to do that. Requires some precision measuring tools, but most shops have that.
Luck,
rScotty