My bike is back together, and I've ridden it to Colorado from Cal and it runs great.After reassembly the compression was around 190 psi per cylinder so the rings are good, as they should be with only 29k miles. The problem was the use of Shell Rotella oil for about 27k miles. As I mentioned earlier the throttle butterflies were coated with soot on the back sides (from the crakcase breather hose), and enough carbon collected in the head that the exhaust valves weren't closing completely. The exhaust valves had small deposits of carbon spots on the mating surfaces. The valves weren't ruined but being that far into it the best course was to put in new exh. valves.
I'll be using motorcycle specific oil from now on, not something made for deisel trucks.