I would try adjusting the valves first. It might help a little with the compression.
loosen the rocker arms beat on the valves a little with a rubber or plastic hammer might knock some crud on the valve seats loose.
then adjust the valves.
for the white smoke aka water leak. you may try re torquing the head bolts. you might get lucky.
the bottom end of these trucks are pretty strong usually just a problem with the heads, valves or head gasket causing low compression or leaks.
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Did a v8 conversion in 1981 on my '76 luv
Current Fleet
#1 1980 Black 2wd, #2 1980 Blue 2wd, #3 1980 Black 4x4 #4 1980 black 2wd Long bed #5 1979 black 4x4 #6 1977 red 2WD
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