| Mike,
   Most cars designed/built in the 60's ( let alone 40's or 50's) were expected 
to burn a quart every 1500 miles or so (at least US built cars... so I assume 
the same for MG's).  I know my '72 would burn a quart in that range from new. 
It sounds to me like you've got a little leakage past the valve guides and 
nothing drastic to worry about.  Now if you get to burning a quart every 500 
miles or so and get a nice plume of smoke when down shifting and decelerating, 
get ready to do some motor work, and least head work.
MBG (My best guess..)
Harlan.
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