+1 a few things we're still unsure of:
correct timing marks used to verify timing across D/S, P/S, and crank (dot verses arrow on the crank and veify both sprockets).
what leakage value did you get without rotating the engine?
in some ways this is simple - if none of that matters to you and you're confident in the leak down tests indicating head failure then install another set of heads or rebuild the existing ones.
With timing belt installed.. Drivers side cam arrow at 12 o clock, front cylinder leak down test at 100 psi..Then drivers side cam arrow at 3 o clock, rear cylinder leak down test at 100psi. Then passenger side cam arrow at 6 o clock, front cylinder leak down test at 100 psi. Then passenger side cam at 9 o clock, rear leak down test at 100 psi.
I was getting 80% leakage.through exhaust port of cylinder tested..
I've only done a couple other leak down test, on a different Subaru engines..For those tests I started on the drivers side front cylinder, leak down test at 100psi . Then rotated the engine from crank bolt with long 1/2 inch ratchet wrench until I was getting air resistance in the cylinder. Then keep rotating the engine with ratchet wrench until I got to tdc of compression stroke. Then compared difference of the leak down testers two gauges. So for example, with inlet gauge at 100 psi and the second gauge at 95% psi that cylinder would have a 5% leak..
Since I've only done a few leak down tests,. Based on the results of my current leak down test, I've got to be doing the test incorrectly.