[Oldcivicjoe]

Probably a fried exhaust valve, blown head gaskets don't generally read that low unless something is wrong with the tester.

 

[Oldcivicjoe]

While you are pumping air in open the oil cap, throttle body and radiator cap, listen at all of those and the tail pipe for sounds of air escaping, will give an idea of where/how the air is escaping.

 

[Oldcivicjoe]

I called a local machine shop here in Houston and they quoted me 220 to do the milling and the other tests on the head. They said it would be $10 to replace the broken valve and another $10 if the guide needed replaced. Does that sound reasonable?

Very, at that price I'd have them do all the guides, then you get another 170-200k out of the engine and the bottom end finishes wearing out the same time as the head next time.

 

[Oldcivicjoe]

You can pull it fully assembled, but the machine shop will likely want the valvetrain off unless you want to pay extra for a rough valve lash setting, before you remove the belt line it up to top dead center with the cam marks flat with the valve cover surface and the arrow on the oil pump pointing at the line on the crank pulley.