Thanks for the reply. It would really suck if it's a bad piston/cylinder. :(

So I just took off the valve cover. I didn't see anything that was obviously wrong. Is there anything I can do at this point before removing the cylinder head? Is there a way to check if a valve spring (or valve guide) is weak or broken?

A wet and dry compression test is very good at determining where the problem lies. If the compression does not change with oil it is a valve issue. If the compression changes for the better it is piston and or ring related. The car only smokes if it is burning the oil but that cylinder doesn’t have enough compression to fire. I would just tear into it. A borescope down the plug hole will let you look around, but I have never bought one.

Where are you located? I have a good short block with a balance shaft delete for $100.

I had a motor out in 4 hours the other day without a hoist. Not hard to do at all if your mechanically inclined

DD, his signature clearly shows his location there in Saint Paris, Ohio. Where are YOU located is the question.

Oh, I'm on mobile. I don't see anyone's signature.
I figured Ohio since "buckeye" but I thought I'd ask.
I'm in Texas. Probably cheaper to get one from a yarf

^^^ That's true. Shipping would probably be outrageous. Especially this time of year.

Shipped a transmission 2 weeks ago. $225 just for fed ex freight

Update:

I did a compression leak test on Cylinder #3. I heard air when I put my ear up to the tail pipe.

I pulled off the cylinder head. As you can see in these photos, one of the exhaust valves for cylinder #3 is burnt:

https://www.dropbox.com/sh/xv5b56lt5...adgq3eu0a?dl=0

I'm thinking the best thing is to purchase a refurbished cylinder head. Thoughts? If you agree this is a good idea, are there vendors you would recommend, and/or vendors I should stay away from?

Honestly, id either find one at a junk yard.
or if youre on facebook, look up category v portworx.

His work is phenomenal. His main focus is porting but he also does rebuild.

Other option would be TJPerformance. He does anything motor related.

They have both been building Ecotecs for 10+ years