So, what is causing my poor fuel economy, high cold idle (better yet it runs harsh when cold) and hesitation? I've driven almost 9k miles since my last full tune up (plugs, wires, brakes, compression teset, LSD change, etc). I've also noticed loss in power. I think I'll start by redoing a compression test.

i looked at the spark plugs and found oil on them. im gonna put new ones in, but can i clean the housing with carb cleaner, or should i use something else?

Carb spray down the holes will work. Or brake cleaner spray is less strong, safer.

The oil down on the spark plugs/boots can cause a misfire. You need to fix the leak. Usually the V/C gaskets, #1 & #2. Not the center one. Not a difficult job at all.

before I teared into the head, I looked for the V/C gaskets in the TSRM and Haynes manual. However, the gaskets are just labeled "gasket" and I'm not sure which ones you are referring to as #1, #2 and center. What do I need to remove to get to the gaskets youre referring to?

Also, could the oil down the spark plugs be a cause of worn piston rings? if so, would I need a valve job or a rebuild?

OK...need to know before we go further...did you have oil on the sparkplug electrodes (the part that fires), or on the outside, and the rubber plugwire boots???


Also......
Worn piston rings will usually cause some oil burning and blue smoke out the tail pipe. It will eventually cause sparkplugs to foul (stop firing).