Originally Posted by ScOoTeR
If the head is off, spray WD40 in your ports and hold the cylinder head up so you can look for leaks (from underneath) at the valves.
From experience, a valve can look like it is perfectly straight and seating well, but even the smallest bend in the valve stem will kill your seal with the seat. The look of your rocker leads me to believe it broke when a valve smacked a piston.
I would also highly recommend a new timing chain while you're at it.
I'm probably gonna replace the valves while I'm at it. I was thinking about it, and i did a wet test and the compression didn't go up, and there is a chip in the exhaust valve.