Looks like I found the problem. As I kind of thought, the valve seal on the exhaust valve rusted and was not sealing. I found gas in the exhaust pipe, and rust under the valve in the head.
I got the new head and piston installed, the valves adjusted, and the cam timed. The head studs did not feel right to me when I was tightening them (before torqueing). I decided to order new ones, instead of breaking off one of the existing ones most likely in the block knowing my luck. That's all I have left, so maybe next weekend I can post a ride video.