The fuel filter is brand new and so is the gas. It was replaced at 200 hours. I think that the valve is sticking. The exhaust port is normal looking with no heavy deposits or carbon clumps. The engine has been mounted with the carb at the rear and the exhaust at the front with the cylinder vertical. The air cleaner is brand new. No oil in it. The filter when saturated with oil from the breather could have decreased the air and fuel flow and increased the oil uptake from the valve cover. The old plug looked fouled. I think that a detonation could have been occurring due to pre ignition, rather than knocking, and because of all of the extra oil instead of the plug looking lean it became deposited and dirty. The portion of the exhaust valve that can be seen with the muffler removed looks ashy and marbled like it was very hot but not glazed, melted hot.
What happens when valves stick? line item # 3
http://www.avweb.com/news/maint/182894-1.html
What happens when valves stick? line item # 3
http://www.avweb.com/news/maint/182894-1.html