I second Mugs. Do a compression check. If the compression is better good after a couple of squirts of oil in the cyl., then it's definately bad rings. If the compression doesn't go up when you squirt some oil in there, then you need a valve job. I've heard of people that do valve jobs, and a few miles later they experience blowby because of weak rings. So doing a valve job only is a bit of a risk.
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