Some updated information:

I compression tested the engine and here are the results:

150 - 110 - 60 - 90

I pulled off the valve cover and didn't notice anything obviously wrong. The oil did have a very odd smell...

The dipstick didn't have any water on it for what it's worth.

So, what should I check next?

If it is the head, where is a good place to pick up a low mileage KA to get me around town while I'm building the turbo.

Thanks!