If #1 is leaking, you might do well to remove the valves and see if one is warped. They're dirt cheap to replace, though I don't recommend replacing all of them. Increasing the compression with a tighter head will put pressure on the old block components...so don't do a valve job, per se, just replace any valves that are warperd or bent.

Valve spring compressors are $20 at any auto parts store.

Once you have the valve springs off, see if you can spin the valves in their guides. Probably not, but they're supposed to spin freely during normal use. A little cleaning gets them so thay'll spin, and you can watch closely to see if th edge appears to go up and down as you spin.

Replacing the valve seals is a must, since you've gone this far, and from experience I'll tell you: do that on the bench while the head's out. Doing it with the head bolted to the engine is cumbersome.

Clean out that whole EGR passage, through the head and manifolds. I used Seafoam spray, and let it set overnight. I used some wire to plunge the passageways, sprayed them with brake cleaner to really douche them out.

Spend a couple bucks more and get the good head casket set: it will have additional gaskets and seal you will appreciate. Save the ones you don't use, like the water pump gasket and the silent shaft seal@ the oil pump.

Out of necessity, I kept the hydrolic lifters in place with mechanic's gloves fingers when re-installing the rockerarm assembly: it kept them from falling out and dropping down the oil passages. I highly recommend stuffing rags or otherwise blocking the oil passages while working on the head, to prevent bolts and stuff from accidentally dropping down. http://www.mightyram50.net/vbulletin...ll=1#post26624

And BradMPH recommends re-torquing the head bolts after 300-500 miles. I did this, and it allows you to also check on all the other components/bolts for good repair. Brad says the re-toques assures no blown head gaskets later on. I went with that suggestion.