SO you've got some leaking valves huh??? The good news is, you're leaking vavles won't leave you stranded. They will hurt performance and hurt mpg, but won't leave you broke down on the side of the road. You know what you gotta do. Eventually, you need one of those GM $1300 crate motors. I have to say, I'm fairly impressed with my 85 K1500's performance, and so far, I am exstatic with the mpg. I put $20 in the 84 C20 and it last about this long, I put $20 in K1500 and its seems I get over 1 1/4, closer to 1 1/2 the distance. Maybe I'm just not driving as much, but is sure seems I don't stop for gas near as often in the K1500. 2 factors, Small Block vs Big Block, and 3.73 gears vs 3.21 gears. Those 3.73's are much peppier taking off and most of driving is in town.
I still think my 84 C20 with the 454 will do much better with 4.10's. And your truck with a manual trans, oughta do even better in mpg.