Water cooling a guide too fast will shrink it, have had it happen before. Todd,is correct on that. Did he know you had water in the cylinders prior to this? It's a good idea your looking at the whole engine.

Well, the verdict is in. Goodwin is replacing all the Iconel exhaust valves with new. All the guides will be replaced as well. Todd says he found evidence that the exhuast guides were rubbing or "quenching" as he calls it on the guides, and said he wanted to replace the valves so there is no chance of dropping a valve. He also found some staining in the cylinders from the water sitting in there over the past winter. One cylinder he said there is about 3 thousandths of electrolysis, so there may be a bit more blow by there. He left it up to me wether or not to tear down the motor to re ring and hone that cylinder. He didn't think it was crucial, and either did I. What i would like to know more about is this "quenching" of the valves and guides. I didn't think a SS valve and Bronze guides would have a problem with a little bit of water......................Can someone explain this better?

Maybe all the exhaust guides were too tight....?

I have seen valves stick in the guides due to clearance and lack of oil. Quenching,would be the valve and guide being hot then hit with cold water, causing it to shrink then become loose in the guide boss.