All,
I forgot to update this threat with teh fix.
The local repair guys wanted me to replace all the coil packs. I called bullshit on this because i tried swapping the coil pack and the fault code stayed on the #1 cylinder. I then took the car to teh dealership. They did a compression test and found that #1 cylinder was much lower PSI than the other cylinders. They wanted more than $1,000 to tear off teh head and figure out why the pressure was low.
I said no thanks and bought the factory service manuals, best $250 i ever spent! Between the book and online forums i determined that the most likely culprits were: valves, piston rings, or head gasket.
After pulling the head assembly off inspection of the valves showed blow by on one of the valves, meaning it wasnt closing properly. Since i was in there i replaced the valves, springs, and associated hardware for all 4 valves in that cylinder. I also replaced the head gasket and vale cover gasket too. After replacing the valves, i stacked up the springs side by side, and alas the one with blow by was shorter than then other 3. The spring had failed.
Replacing the valves was childs play with a spring compressor. By far the hardest part was re-timing the engine, which i figured out a clever way to do. If you all have any more questions, let me know, ill walk you through what i did. The dealership would have charged me more than $3,000 for this repair. I did it for $400 (including the cost of the service manuals). Total time spent, about 12 hours, because i am a fucking noob mechanic. Good luck all.