It Runs!!!
But I guess the problem was not valves after all. I did re-do them, and got good results from the suggestions here. But while trying to start the engine I realized only one cylinder was firing, and if I moved that spark plug the working cylinder moved.
My original spark plugs were simple, with no ground strap, just what I think is called a surface gap base.
This weekend I made new plugs, from corian, as detailed here in several threads. I glued them with 5 minute Locktite epoxy. After a couple hours waiting I tried to run the engine, and it fired up almost instantly and ran great. I only let it run a few seconds, since the epoxy was still probably not fully cured.
[ame=http://www.youtube.com/watch?v=x9GEb1wudiw]http://www.youtube.com/watch?v=x9GEb1wudiw[/ame]
Today Ive given it a few more runs. It has some carb problems, but I think I'm going to declare this engine done. Its got several design problems that will keep it from ever being a great engine, so I am going to just wrap it up in a way I can run it at shows and declare it finished.
On to my model Steam launch so I can take it to Cabin Fever in January.