Phew a few things to reply to here haha

Ok so steptoe first;
Good ideas with the wet/dry and leaving the studs in, would have to be very careful though not to get any sanding crud in the cylinders?
Yeah good to get to know engines on old technology first, we were saying what if we were doing this on dad's car? (L series) he shook his head and says "wouldn't even think about it"
And never mind about me removing valves and things, the whole heads as they were went off today. Apparently they're going to clean them up, pressure test, dismantle, inspection, report to us and quote before they do anything big. Won't be seeing the heads again for at least two weeks

Interesting spanner, how is it of benefit? And yes we have a torque wrench.
Turning the engine over with the ratchet and watching the pistons, from what I can tell with the naked eye all of them come up flush with the block and putting a straight edge up to them confirms, but a worrying sign: the cylinder that got the rag in it, the piston comes up a fraction of a mm higher than the others

would explain the higher compression? but I don't understand how an obstruction in the cylinder could make the piston/rod longer? Would I be able to see any signs if I took the sump off?
Oh and I'm 6ft by the way
RSR, Hearing that the cylinder head guys are going to have to quote us, sounds like it could cost a crapload

Might have to put the heads back on myself, what with the price of all the gaskets I need not gonna have much left for mechanic costs. Plus will learn how to do it as well, will probably find it's not as hard as it seems

Yep found how to remove studs, should have googled it before I asked

I tried but they won't budge, and I don't want to force anything by a whole lot I never know what might break or bend properly this time.
As for hitting heads with a mallet, the book said you can do it (soft faced hammer) to break the gasket seal and I'm sure I've seen it done somewhere else, but it seems not such a good idea (especially with studs)
Dad said he's heard of someone undoing all the nuts and then threading them back on a few turns (not tight at all) putting a chain or something wrapped around the engine and then cranking it with the plugs in, compression breaking the seal. Wasn't to sure what could happen with this so didn't try it.
I think that's everything haha
Cheers!