Re: OK - it's time for some schooling.
1892,
If it were mine, since it's not smoking or burning oil, I'd give it a fresh tune-up and valve adjustment (not a bunch of money) and see how it does. During the valve adjustment you'll get to see how clean/dirty the heads are, possibly adjust the ticking sound out, see how the spark-plugs are burning (clean/dirty) etc... adjust the carb, etc... You may find this will take care of your problems, increase gas mileage, etc..
Now, if you find the plugs are dirty with oil, you can't adjust out the tick, etc.. you might want to do a compression test and see what you've got and go from there.
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