MK 111,
What we are trying to suggest is that the inlet valve guide boot has slipped off the guide, my bike did this and it looked exactly like your cylinder. If it is, its an easy fix, see the photos below:
You'll have to remove the offending valve springs.
Watch the left exhaust pipe in this video, this is what it looks like ( watch it full screen ), i popped the boot back on and all was well :
http://s113.photobucket.com/albums/n229 ... l11001.mp4
Stick with the copper gaskets, they've worked OK for the past 40 odd years, you'll need to re-tourque a few times.
Suggest: fit the head torque up, run the bike really hot and let cool, re-torque, ride 30 miles, re-torque, ride 100 miles re-torque, ride 2 or 300 miles then re-torque, then may again at 1000 miles, you'll probably never need to touch again..........................