Have you checked compression or done a leak down test? I have just had the heads worked on because of a leaking exhaust valve.
The symptoms were a backfire through the carb when accelerating from about 1800 to 2000 RPM and some popping out the exhaust at idle. At first the backfire only occured on an autocross course, but later would happen anytime I tried half throttle acceleration.
I have no idea how the emissions were since my car is a 72 model and doesn't require testing in Atlanta.
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