318 rebuild/overhaul kit

Go ahead and do a compression test to see if there is anything obvious that needs further investigation before tearing into it, it's always good to know beforehand instead of being caught by surprise. Surprises are usually never good for your plans or budget. I do recommend the steel core valve cover gaskets if you plan to pull the valve covers down the road, they seal better than the cork/rubber composite and are reusable to boot.