Thanks for everyone's help this far. We finally got it tore down completely and found the source of the oil leak from the head gasket. It was leaking at the front oil port that goes up from the block and into the head cylinder. I also found small leaks at the water jackets on the drivers side.

I did find something else once we started cleaning the piston tops. The pistons are narked .75 over on the tops and they seem a little sloppy in the bores. About a 1/16" of wiggle room. The seem to wiggle more front to back than side to side.

Never been this far into a 22R before. Does having pisons oversized this much mean this block is nearing the end of it's life? How tight should the pistons be in their bores on the 22R? need to Thanks for any help on this.