Jim_Gruber said:
Ed,
I don't have the heart to part her out now...but don't have the time and $$$ to fix it right.
You're ahead of the game in terms of what you paid for the car.
In terms of the rebuild, there is no need to rebore etc unless necessary.
you can rebuild for hundreds of dollars, not thousands.
One thing that hasn't been factored in is that it is already a replacement engine. Looking at the work already done to your car, (weber/ rims etc) it seems like it as been done to a high standard. I can't imagine he would have done all that an then dropped in a clapped out 1275. I am much more likely to believe that it could be something as simple as rings lined up instead of rotated. or possibly defective rings in that cylinder.
Another alternative is go slow and see what happens
1. head gasket
2. rings in weak cylinder (I think you can do this with the engine in)
and decide from there.