I can buy a new engine for $1500, but the parts I should need are around $130 to rebuild the head. My suspicion is the valve seals are bad, but I don't know yet. It looks to me there are four bolts and the valve cover comes off, four more and the head comes off, and hopefully that's as far as I have to go. If that doesn't fix it and I still have low compression, I'll remove the 'jug' and replace the rings which are another $120. The welder still starts and runs fine, and sounds really good, just burns a whole lot of oil, and has never been run below the cross hatches since I have had it, about 120 hours of run time. This welder has 843 hours on it, and looks like it was taken care of. It was from an estate auction, so who knows if it was maintained. We have the exact same welder at work with 4000 some odd hours on it, and it's still running strong. I guess I better go to wal mart and buy a camera, because I suppose you folks will be wanting some pics. My last camera was destroyed when my horse rolled on it, and my rifle too.