This is an over head valve engine right? If so I would pull the head and if it is a seat that fell out. you can do like JD Seller stated and drive it back in and use a center punch to seat it and keep it in place. I have seen many last a long time like that and some that don't, but all you are out is a head gasket and some time. Dixie isn't a bad coach and I wouldn't kick it to the curb for a bad gen set. Upgrade the gen set and it will go or many more years.
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