Mike, as for the compression test, I have mine done when still warm, and I might see a variation of 10 lbs or so; but I would sure be surprised to find a 38lb test that did not indicate an actual problem,and was ok one flight later.
If the exhaust valves are actually leaking I have found that you can hear the compressed air coming out of the exhaust pipe.
In my case, I bought a 88 Be36 TC, with about 1200 hours, seemed to be in good shape. Frankly, since I had been flying a Mooney 201 for 10 years and it made it to TBO,and my T-34A had no real problems with the 0-470, I was not really aware and not as concerned with Cont engine problems as I might have been and my prebuy inspection may have missed something. The plane had already has one factory rebuilt engine for the previous owner due to case crack under warranty, so I sort of assumed the new engine to be good; and I also wanted the plane as equipped and as priced.
I flew it for awhile, then on the way back from Sun n Fun, I noticed a rougher idle and loss of power on climb; still had good mag checks.
When we got it home, one cylinder had NO, THAT IS ZERO, compression. Flying it another hour was not going to help; there was actually a pie shape piece missing out of the exhaust valve, just gone, so that I had about 315* of the original
360* face. I had never seen something that bad. A couple of other ones were low but had some compression.
The factory sold me some cylinders at cost. but I have still had some problems over the years, and had to buy a low time engine to replace that one due to a major case crack behind the alternator. By the way, my work back then was at an expert Beech shop, Pearce at Meadowlake.
I didn't know that Cont factory cylinders had good and bad years. Thanks for the info. As for as I know, down there in Alabama, the teach real good football, but not so much readin n ritin or engine building.
I may overhaul mine next year, am leaning toward Ram in Waco, and probably new ECI cylinders. I would appreciate your suggestion on this. Thanks
PS my friend has their flight school Cirrus 22 down right now and engine at Firewall for a case crack.