Hi Jeff
My 1450 looked similar when I took it apart but not as much oil. I did not have oil residue around the exhaust area either most likely because this area gets very hot and would burn it off.
I would lean to the side that you would need rings knowing the age of the unit, do you know how many hours it has on it?
Some signs that rings may be need are:
1) Does it burn oil when running? (do you have to added oil often)
2) After changing oil does it get dirty with in 1 or 2 uses?
3) When you pull the head is the top of the piston wet with oil?
4) When you first start it do you get a large puff of smoke?
While you are cleaning things up you may want to add a brace to the muffler where it bolts to the Aluminum shield. They crack at that point, if your has not cracked already. Of course don't forget to check the rubber ISO mounts common issue in the QL series.
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