In my case we found two burnt exhaust valves on cylinder #6. Appears to have been caused by (thermal damage/possibly mouse chewing) to the injector wire/connector harness to #6 injector as it wasn't pulsing/spraying fuel as it should (lean condition) until my mechanic replaced the end wiring & connector harness.
On the bright side my engine looks completely devoid of gunk or sludge and looks new inside. My mechanic has checked out the bottom end and doesn't feel that new bearings are necessary. He has replaced the rings and honed the cylinder walls and was surprised at how little taper there was in the cylinder walls...maybe half a thousandths. He put the engine back together and his assistant is installing it back in my VX...should get her back anytime now.