I did the oil in the cylinders trick and it didn't change the readings one bit. One did read 10psi higher (70psi), but since the others were the same my guess is that I just didn't read the gauge quite right the first time.
Put in new, correct plugs and ran it a couple of times in a garbage can for probably 15 minutes each time with no issues. Fires right up, idles down like it should, and no blow-by or blue smoke at all, hardly even a warm oil smell out of the blow-by tubes. I need to check the timing just to be sure, but it starts and idles down smoothly, so its probably within spec.
The plugs come out a brilliant white, so I pulled the carb and will take it to my carb guy next week along with the plugs and see what he thinks. Looks like re-jetting wont be as easy as on my Holley, but I'm sure he can get me going in the right direction.
At the very least, I would like to bump up the jets and get the plugs to read a bit more like they are supposed to. Also fresh ethanol free fuel. That way at least I will hopefully stop the damage from continuing and leave any big projects to be re-examined this winter.