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I have been giving some thought to all the posts. The head gasket theory is possible, if it is blown directly between two cylinders, fire from one could leak into another on it's intake stroke causing the backfire. Also, a carbon buildup on an intake valve, or a somewhat burned valve or valve seat in any cylinder could allow combustion heat back up into the intake. If you have a lean condition (power valve failure for instance,) makes the fuel/air in the intake easy to ignite and can aggrevate the condition. Timing, if early will also contribute.
Five degrees of backlash in your chain is not critical, but if you are tearing it down, by all means change it. Especially if it is of unknown age or mileage.
Be sure to do your compression and leakdown test before you start tearing it down so you will have a better idea of what to look for.
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