HTF you see that!...Wow!
op, is there bellowed up pipes on that list or kick the idea around

 

Post #1, installing bellowed up-pipes and chasing oil leaks is what brought him to this shop in the first place.

 

Yep, I'd say that was a good eye plus an experienced eye. I would say that he's seen something like that before. Now for the cause and solution.

 

Quick Update.
First of all, a big thank you to everyone who have shared their thoughts and helped me with this ordeal. This has been a crash course on diesel motors for me and I've learned some good things, but there are much more for me to learn.

Today, I asked the shop to send all 8 valves to the machines shop, and all came back good, none were bent, so that's good news. They are going to start reassembling everything. They will change the HPOP O-Rings too...There's a longer parts list. And even though he's not charging labor, this has become pretty expensive in parts alone. I recently bought the van, so I hope this will be a "million mile" motor. I hope everything will go back together well.

 

Too lazy to go back and re-read. Did they check the other side with a leakdown test? Kinda different than a compression test, but still some idea of ring / valve condition. You had one bent pushrod and one (previously) kissed valve on this side.

 

I'm just thinking about how it would bite if they put it all back together and still have the problem. Keeping my fingers crossed for you here.

 

The next question is whether you should keep your original #7 injector vice the reman one they installed. Some of the internal parts are not replaced or renewed during the reman process, so you may be trading your 200k mile working injector for one with really high mileage parts, but with new o-rings and cleaned.