BIG motor problems.... need opinions on what to do
So...how do you know for sure it's a burned valve? Leakdown test and stethoscope is about the only way I know of to diagnose compression loss to the source, did you do this or some other diagnostic procedure?
Then, I'd get someone who knows EFI to hook up a scanner and check out the computer's operation. O2 sensor readings, LTFT variation between banks, stored error codes are my favorites.
I helped a guy w/ a freshly "tuned" LS1 that wouldn't make power and idled super rough/gassy, turned out the shop had cut one of his O2 sensor wires to force it to run open loop. Soon as he repaired it and put the stock firmware back into flash, the thing woke up and started behaving.
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When an engine fails the compression test, I do a TDC leakdown test at 100psi on the affected cylinder(s). You can hear the air escaping either into the oil pan (bad rings/piston), or the intake (bad intake valve), or the exhaust manifold (bad exhaust valve). Much more conclusive than a compression test, where you can't tell where compression is being lost. No sense pulling the head on an engine w/ a holed piston or ripped ringland, for example.
Get the compression data for all 8 cyls and report back. Again, I'll be really surprised if he finds a problem but it's a good diagnostic step. If the compression is good (all cyls within 10% is a good baseline) then ask what his next proposed step is and report back.
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If the compression is good, it's time to get busy w/ the laptop or whatever scanner (not a code reader, an actual diagnostic scanner) and find out how the engine's burning.
Verify it's going into closed loop at operating temp, check for major variation in LTFTs between the two banks, verify you're getting at least 85% adaptive spark scalar, check for stored codes.
If it's really snotty w/ fuel at the exhaust, one of these will usually tell the story.
I've had my LS1 develop a persistent misfire and an error code related to injector bank voltage (P201?) that turned out to be a damaged spark plug wire...the ign coils on each bank are fed voltage by the same circuit that feeds the injectors on that bank, so the electrical transient showed up on the OBD-2 injector monitoring side. Lots of head-scratching involved on that one, I only found the bad plug wire because I was removing them to read the spark plugs.



