These engines are prone to burning the exhaust valves. One of the culprits is clogged egr passage in the cylinder head. Make sure to clean it thoroughly. The next thing to do is up grade the exhaust valves to stainless steel available from 3tech. They are more durable than stock valves. Judging from you're "whoops" picture, it appears that your cam gear might be bent. If so, replace it with an advanced degree timing gear, also from 3tech, as it will give you better performance and mileage too. Make sure that you do not reuse the original head bolts as they are one time use torque to yield items. Last thing that I would advise is to get a decent head gasket from Fel- Pro. Best of luck on the rebuild.
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