OK, heres what you are up against. If you do a real valve job on a high mileage motor you run the risk of blowing the rings out. In order to save it without a complete rebuild I would replace the valves and just lap them in. Pour some cleaning solvent on top of the pistons and see if they let it past or keep the puddle on top. If it drains past go get drunk and price another motor. Judging from the carbon pattern the rings are still good to go. Always replace headbolts- cheap insurance. I like to dissolve grunge on mating surfaces with cheap carb cleaner and a rag, dont sand it if you can help it because that removes metal. The water pump was the culprit, I always insist on a replacement regardless of the condition if its got more than 50 on the clock. Replace the cam, crank and layshaft seals also. If you dont have valve grinding compound just scrape up some of the powder around your bench grinder from the stone and mix it with water- thats all that stuff is anyway. I wouldnt plane the head unless absolutely needed, more compression is not what you want here unless its all new parts. Buy the best replacement belt available, going on the cheap costs more in the long run. 16 valves and a builders gasket set, new head bolts and new belt sounds like 300 buks or so. If it came in here I would quote around the same for labor. Good luck with er.:helpme: