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Originally Posted by PeterSeymour
I still really do not know why a valve would break off like that, other than it just being bad.
Nor do I understand how this engine with only one cylinder was able to run so well with a valve not only missing but stuck inside the engine.
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There are too many unknowns to get a really good answer, the main one being: Did the oil get low before or after the valve broke? I think it's a good bet that the oil got low first and NO OIL caused the valve problem. But that's just a guess and you likely will never know for sure.
Trust me, the engine did NOT run "so well" AFTER the valve came completely loose; it won't run at all with the exhust valve wide open. That spell of running different likely happened when the valve stem first strated to crack OR when the engine started to overheat due to lack of oil. If you had stopped running it at that point to investigate WHY it started runnning so differently, the valve might not have broken.
Hind sight is often 20-20 but, in general, any time an engine exhibits a drastic change in how it is running, it should be shut off and not run again until evaluated by trained personel.
I expressed my opinion about what you should do next already and that hasn't changed as a result of your latest discoveries. The fact that you work at a machine shop might make a little difference but I don't think you can trust that engine again without a complete rebuild. The only things likely not affected are the transmission, clutch and cams. You certainly need a new cam chain guide and that makes me wonder if the chain didn't experience and extreme stress too.
A "new" engine would be MUCH easier......and probably less costly in the long run too.