She's smoking worse than I do, nice blue oil smoke and following drivers gag on the fumes so I did a compression test to see how bad it is.
results-
W.O.T, cold. (ok, I know it should be at working teperature as the choke is closed when cold etc but that's immaterial with these results).
cyl dry wet
1 118 125 psi
2 120 127 psi
3 75 125 psi
4 125 127 psi
Test repeated the following night with same results within a psi or two.
Looks like all are low but cyl 3 has major issues.

I checked my guage against a calibrated one at work and it's reading a couple of psi or so low but close enough.
Plugs are a nice tan colour after a decent run and a bit sooty after just idling.
No oil or bubbles in the coolant. no mayonaise in the oil, slight weep from both head rubber seals.
Oil leak from the crankshaft oil seal.
Looks like the lump will be coming out over the winter.
I've done engine rebuilds before, one on a flat twin 2cv6 and one on an inline four suzuki bike. so flat four will be my first water cooled but shouldn't be beyond me especially following some of the engine rebuilds on here. So thanks for the info guys, gives me confidence to get stuck in there.
If anyone has experiance of one cylinder being significantly lower than the rest and what the cause was I'd be glad to hear your experiances.
If i'm lucky it's a stuck ring, if I'm unlucky it's a broken ring that's scored the bore.
Fingers crossed I don't snap and head studs.
