Update on the gnat:
Went to the machine shop today to pay for the valve job. Two badly burnt and cracked exhaust valves seem to be the major contributor to the zero compression in their two cylinders. In addition, they said the valve guides were loose, out of tolerances as well as the seats being all "jammed-up" with carbon, requiring them to be re-cut. He said there was evidence of a lean condition (the burned valves being the symptom, not the cause), and he suspects possible "bad" fuel injectors. - next thing to check, I guess.
The other picture is the gnat's under-hood area with the "headless" engine patiently waiting to be reunited with it's re-furbished head sporting two brand new, shiny exhaust valves. Two new axles are on the way, too.
In a few days, I might just be driving my awesome mileage machine again.
