To start I ripped apart the block to see more of what is going on inside,I started some repairs on the threading with the exhaust manifold.
Moving forward with the parts ordered: A14 ARP head studs with this route as the head bolts from the stealership seem to be a hit and miss on ordering and could take up to 2 - 6 weeks so I have also ordered headgasket, plugs, plug wires and this all should be good I should not any longer have any issues with cyl pressure.
Next moving onto reinstalling the head and timing belt, as this was set to TDC when I took it apart you can notice the nudge is 1 tooth below the marker on the bottom, the second picture was supposed to be the correct setting as per the book. But it came out a bit blurry will fix that later. In the end, it is complete with all the correct torque specs and alignment.
Here is a video of the distributor timing for people that get confused how to set it from the FSM
Did more things to the car as it is nearing completion and I discovered the pully has an issue.
This time, I am complete under the hood, now the fuel pump re-wire. Since this is an 1986, it is classified as the Mk1.5, IE: it has the mk1 look but the wiring harness changes that is commonly found in the mk2 version of the s12's, this mean the ECU has fully control over the fuel pump and to re-wire it requires 30amp relay and 15 amp fuse. I also had to tap into the Rear wiper blade on the fuse block, I don't have any future plans on using that blade since I have louvers that block it.