well its definatly leaking from the valves, with 40 psi in the compressor and both rockers rocking it was blowing a lot out of the inlet port so either the valve seat is shot or the valve wasn't seating properly? unless i'm missing something?!
just checked the valves in the drill and they seem straight although they seem strangly worn, some bits are shiny and some dull, pluss theres a bit of a lip on the stem