Noticed this when I was adjusting the valves when I would tighten up on that cylinder it would push air out at me, so I put a compression gauge to it and it was only holding about 60 psi. So I did a leakdown test on it, and couldn't get the exhaust valve to seat and had some air coming out of the dipstick tube. But one of our "techs" claimed that some air would always come out of the crankcase, and I believed him, but just wanted to see how much actually does come out, so I hooked it up to #1 cylinder and no where near the same amout of air was coming out of the dipstick tube.

So I was thinking it could be a burnt valve, a hole in the piston, or the rings are messed up. Anyone think I'm near a conclusion? Had the motor rebuilt about 9 months ago, and was told it had a 1 year warrenty on it, but the machinist was leaning towards I ran it to hot and burned it up, or it was spark knockin from late timing. But i'm not trying to put him down, if it is my fault then it's my fault and ill have to save money to get it fixed. Thanks guy's and gal's

 

Wow, 60 is low! Hole in the piston? No, then the cylinder wouldn't hold any air. I take it you were adjusting the valves while the engine was running?
You "couldn't get the exhaust valve to seat"? Does that mean you could hear air rushing out through the valve guide? Did you back off your rocker arm when trying that, to know there wasn't a load on the valve? If that's what's happening, then you have a valve seating problem.
If you need to check your rings, give a few squirts of oil in the cylinder, aiming in a circular fashion trying to aim at the rings. Then check your compression. If compression jumps up noticeably, your rings aren't sealing well, possibly never seated properly?

 

One other thing. SInce you're adjusting valves, bring that cylinder up to TDC and back the rockers off until there's just the slightest play. Recheck the compression on that cylinder, and see if it came up. If it did, then you're not getting your valves properly adjusted.

 

Wow camaro, I thought 60 was low, bein that all my other's are holding around 150 psi. Hmm,
I've already tried putting it on TDC and there was a slight amount of play in both rocker arms.
And about backing off on the rocker arm to get the load off of the exhaust valve when doing the leakdown test, I didn't think to do that bein how the intake valve sealed right up, so the exhaust valve might seal right up and I'd be looking at another problem i'm assuming.

And when you say squirt a little oil around the rings. whats the best course of action to take to get that done?

 

With an oil can: Oil Can
Give it a few squirts inside around the cylinder.
I mentioned backing off the exhaust rocker arm for your own peace of mind just so you know for sure it's not being compressed at all. It's a simple thing to do, just back the nut off a full turn or so, and crank it back in the same amount when you're done. If you're still getting a valve leak after that, then the valve isn't seating. On the bright side, it's easier to fix a valve than a cylinder.
And I presume the valves were ground when the engine was rebuilt, or were they replaced? If the valves have been ground once too many times, the seat area can get too thin around the outer perimeter, and the valve could start to mushroom out. That, or you scorched it.

 

Their new pistons, and I don't know if I mentioned this before, if I did than i'll just state it again just so I know, When I tighetened down the valves on that cylinder it pushes air back at me and makes a psh psh psh noise. Then stops after about 1 1/2 seconds of doing it.

I didn't think to try loosening it up and then tighetening it back down to see if the valve would seat properly. I'll try that in the next day or so, going to put a new thermostat in today, having an overheating issue, The more I drive on the highway at a higher speed the more the temperature wants to raise, and if I were to keep on going the temperature would keep on rising, so I'm starting cheap on that and working my way up to having to put a new radiator in.

Also, if a catalytic converter has been on a vehicle for 30 years... What are the chances it could be clogged?

 

When you "tighten down on the valves", do you mean the adjuster on the rocker arm? If so the more you tighten, the worse your problem will be! You should be backing off on the adjustment, as Camaro69 mentioned.
Some of your overheating problems could very well be related to valve adjustment. Too tight and your engine will run hotter, as the valves aren't completely closing and you're getting exhaust back when your intake valve is open.
If you're not very familiar with valve adjustment, you might want to take it to a pro to get it right, before you burn something up, if it hasn't already.

 

Well, what I was shoulda said was that I mean't I could loosen the valves up on that cylinder an entire turn and a half and still I would get the psh psh psh noise when I tightened it down to any extent. Does that make any more sense?

 

Yes, sounds weird? Loosen it up until you get lifter rattle on n#3 cylinder. Then just tighten slightly until it stops. Then repeat the compression test.