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The engine has noise while idling and increases proportionally with rate of acceleration accompanied by vibration. Little noise or vibration when throttle is released at speed in lockup. Using the stethoscope as shown, some of the valves have significant noise. Some are intake and some are exhaust. No. 7 has noise on both.

What testing should I perform in addition to:

1. Compression
2. Manifold Vacuum (below carburetor)
3. Noise location - valves (This consisted of use of stethoscope at top of valve spring as shown in photo.)

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I guess the main question is:

1) What is the problem you are trying to resolve?

I was able to get a lot better sound-location by putting the stephoscope right on the adjuster (well, the hydraulic adjuster in my case) - they move up and down a bit, but not enough to interfere with the sound - and it locates much better to what valve is the problem. Try it!

Some background on what the problem is, or why you need to remove the head may be helpful.

I probed from the top of the spring to the housing at the base of the lifter and found that the noise was most pronounced at the top of the spring.

Have you checked the valve clearances?

Packard Valve Adjustment Video by Ross:

Adjusting 1953 Packard Valves - Speedwell Garage

I have set all of the valve clearances. The noisiest valves are set and the lifters rotate freely either by hand or on their own. I will say, that while I haven't determined this for all of the lifters, number 4 exhaust will not retract beyond .011".