I read somewhere that if the valve does not close all the way, the compression from the cylinder leaks past the valve and can cause the seal to fail/leak, but it will not be the first time I am wrong and I doubt that will be the last!
confusion...
It is the seal between the valve and the valve seat that fails, not an oil seal. The oil seal is on the top of the head, where the oil is, not down there where the flames are.
Read this, might clear up a little bit about valve clearances. Wrote this a while ago for someone else, but it applies here...
Why you need to adjust your valves, especially if they aren't ticking...
Valves heat up and like anything else they expand, they get longer. The clearances are set cold with this expansion in mind, so the valves can still seal even if the engine gets too hot. Now as the engine runs several thousand miles, the valves contacting the seat eventually wear into the seat. After a while it can go farther in before it contacts the seat, the valve actually recedes into the head. This leaves the stem poking out a little bit farther, hence the clearances tighten up as the miles add up. Not always, there are other things in there wearing too, but they usually get tighter.
The only path for heat to get out of the valve itself is through mechanical contact with the seat, which is connected to the head, and to the cooling fins. Maybe a little bit by contact with the valve guides, but not much. There is no other path for heat to get out of the valve. Now if you neglect the valve clearances, and if they get tighter as they generally do, the valve eventually doesn't contact the seat as well as it should, so the valve doesn't cool itself as well as it should. It gets hotter than it should be. When it gets hotter, the valve stem gets longer, and so the valve contacts the seat even less, and the valve gets even hotter. It is a vicious circle, the valve gets hotter and hotter, longer and longer, and cools less and less...
The end result is a burnt valve. When the valve/seat contact is so poor that actual flames start to leak past the edge of the valve under pressure, the valve gets extremely hot in that one spot. Sometimes the edge of the valve gets messed up, then it can't seal so well. Sometimes a pie wedge shaped piece of the valve burns away, but even if it's not that burnt, it won't seal again as well as it should. The cylinder may still run, at least until it burns more, but it won't run right.
Anything else that makes the engine hotter than it should be makes the problem worse, such as a vacuum leak or other lean running problem, or retarded timing.
Adjust the valves correctly, then check the compression. Hopefully you caught it before any damage was done.