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Possible Valve Seal issue...
Here is a link to FFCars.com to a fella who had what sounds like the same issue with his Ford Racing BOSS 427 Crate engine:
#257 Go cart - bittersweet.... - FFCars.com : Factory Five Racing Discussion Forum
I'm a little nervous... cause I have the same engine, but have not started it yet. Hopefully I will in the next few months.
Hope this info is helpfull... good luck.
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FFR6682 - MK 3.1 complete kit, Forte built Ford Racing BOSS 427W(475hp/500lbs), TKO600, Power Steering/Brakes, VPM Front/Rear sway bars, Bump steer kit, SAI mod, 13"Front/11.65"Rear Cobra rotors w/calipers, Nitto NT05-255/40R17-Front, 315/35R17-rear,3.55 IRS.
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