After disassembly , there is a single seal on each valve, and they appear to be identical. So I ordered new seals and valves from a local shop. Whatever he gave me matches exactly what was there.
So, here's the weirdest thing. I just put it all back together. Set the cam timing exact by the book. Visual check shows both lobes pointing down, piston at TDC, rocker arms have clearance. I set the clearance to .003" (book says .1 mm, google says that equals .003"). Super carefully put it all together, triple checking everything. Hand crank to make sure it spins freely. Compression feels MUCH better now.
Ok. so I hit the starter, and I got the most horrible CLACKing sound!! I'm certain it's smashing into one of the valves. So I take the valve cover off, and back out the valve clearance adjusters all the way out to see if that helps. Same exact nasty sound. I don't feel anything when I hand crank it though. So, before tearing it down, I pulled out the intake rocker arm shaft and rocker arm completely. No intake valve now. No sound.
Next, I put the intake rocker arm back in, and pulled out the spark plug. No sound! What? If the piston is hitting the valve, what does it matter if there is a spark plug or not? Is the valve hitting the spark plug? I put the plug back in only 3 turns, just enough to hold it in, but not enough for it to be sticking into the combustion chamber. CLACK CLACK. WTF?? (the spark plug is not plugged in at this point, so it's not ignition firing.)
It's a very solid metal-to-metal impact sound. But it doesn't happen if either the spark plug or the intake valve is removed. And there aren't any signs of impact on the spark plug either. And it is the exact spark plug specified in the book. NGK DPR 7EA-9.
I'm stumped. Guess I have to strip it down again, and have a look inside. grrr....