CALLING ENGINE GUYS/GALS

I'm thinking the OP had some serious suspicions about the whole deal to partially tear down a refreshed engine on the basis of a bad leak down. The air coming out of the intake would have concerned me if I knew for definite that the valves were closed. It's usually not a bad idea to double check a refresh if it's been in storage a while anyway. Especially with the replacement cost of a 340 block if it gets a window put in it from a rod coming out.