laping.... find a really flat surface like a sheet of glass. i have a piece of granite counter top i use. i use double sided tape around the edges of the biggest piece of sandpaper i can find. (800-1000grit) stick it to the flat surface and work the piece you are lapping in a figure 8 with some wd-40 as lube. try to keep the wd away from the edges or the tape will start to fail. and it is also hard to find a piece of sand paper big enough for the cases. i mainly do this on the head and jug mating surfaces. you can use rubbing compound for car paint on a sheet of glass also. just make sure the glass is on a solid surface and held in place so it doesn't move around on you. mcdizzy did a good write up on how to lap as well. but i think you gotta pay to view his stuff now.
That air leak from the crank vent during leakdown testing is exactly what mine did when the right crank seal was toast, so don't skimp on the oil seals when you take it apart, just get a complete set and do em all.