looks like cylinder 4 has been burning more oil than any of the other cylinders... note the excessive carbon build up compared to the tops of the other pistons...
i think the oil around cylinder 1 is just oil in the head when you took the head off... as it looks obvious to me you didnt drain the oil or coolant before taking the head off.. but i could be wrong
my thoughts - if cylinder 1 was burning that much oil, and if you think thats where it was leaking from, it would of be blaintainly obvious when you did the cam and crank seals
im thinkin head gasket is fine, i think its a combination of worn bores and rings, and / or stem seals in the head, but since youve got the head off, recon the valves, but pay perticular attention to the valves on cylinder 4, as youll see excessive carbon on the heads and around the base of the stem if the stem seals have been badly leaking
yet i could be wrong...
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