Boring, drilling, or reaming are the typical operations for installing many of the replacement guides or liners.
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First and foremost is always check the valve stems for wear as subtle amounts of wear here adds up in a hurry. Beyond that, there are several ways to fix worn guides. Knurling is the car lot repair and not recommended as a long term fix. Drilling or boring out the original guide and installing an iron or brass replacement is another but this one can become elaborate and expensive. Bronze guide liners is the least expensive and easiest but make sure there is adequate clearance on the stem and liner to reduce the odds that the liner is not seized upon and pulled out of place. Screw in bronze guide liners are my choice for most iron heads.
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Here’s the link to a past thread talking about guide repair.
http://forums.y-blocksforever.com/Topic7050.aspx

Lorena, Texas (South of Waco)