360 help please

G'day Bakerlite - I didn't even notice the damage at the bottom, I was too focussed on the damage at the top.

You can also see where the edge of the piston is also hitting the head. You can see this on the bottom of the first and second picture you posted. I wonder if the piston is starting to fail.
Rebuild time.
And you got it from Victoria?? They are well known for thrashing Valiants :)