Ok, next question.
Should the power valve bearings be airtight?
If not, or if so and they've failed, that could be how the pressure from my engine pressure test was coming out behind the clutch slave; not through the crank seal, but through the power valve. I may have simply needed to tighten the clutch slave bolts. It seems odd though that there isn't a gasket to go there though. ...maybe the oil, water, dirt, etc from the chain would destroy a gasket? I don't know.
But if not, isn't that an air leak issue as the engine can pull air in through the two powervalve vents.
All in all though, the bottom end of the engine looks like it's in good condition. I would hazard a guess that the whole engine got some love when they upgraded it to 300. The only dodgy looking part is the top piston rod bearing, which looks like it has some rust spots on it...