In talking to Damian there are a few issues with the engine, the problem with the rings letting by is causing a loss of power and control of combustion at the top end of the rev range. I'll most likely swap the pistons out when I Supercharge the engine next year.
Unfortunately there is also an issue with the engine smoking badly on overrun, Damian feels it may be the valve guides that need replacing. I'll see how bad it smokes when I get it back and remove the head for inspection if need be. I hope that this is not the case as guide replacement is expensive.
The final issue is that the counter balancer has been removed which makes the engine vibrate quite badly without it. This is apparently often removed and thought to give more power, but is not really proven. These are quite cheap on eBay, so I can get one to try it out to see if it makes things better.
All in all, I guess that I have learnt a lesson that there is no such thing as a hardly used race engine, always assume that they have had a hard life and expect to have to pay for a refresh. In hindsight, I would have been better off with a stock engine for my build.
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