Well, the leak-down test turned out badly. #1 - 30% at intake valve, #2, #3, and #4 - 40% at rings.
So, it needs a top-end rebuild, at least. I could skate a long for a while, probably, but then I run the risk of rendering the engine non-rebuildable, thus giving up a core exchange.
Since a top-end rebuild is within a few hundred bucks of a new (well, rebuilt) engine, I'm going to go with the new engine. Buslab's rebuilder is JCS. They have a good reputation (and Buslab swears by them), and all of their Type 4 engines use hydraulic lifters and come with a 12k/12mo warranty. So, I think it's worth the money.
I've basically doubled the cost of the Bus now, but I should not have to worry about anything engine-related for a good long time once I get it back.