
"Rotary" valves have been around almost as long as the 2 stroke engine. They can be geared to work as 2 or 4 stroke engines, which is awesome.. gear it one way, its 2 stroke, gear it another way, its now 4 stroke. I believe someone did attempt to make a "variable" setup at one stage, not sure how that worked out tho. Must look into it. Could be an interesting exercise to try and re-produce.
One of the earliest examples of rotary valves i know of is the ""Aspin" rotary valve. There may be earlier ones, cant remember on hand. Heres a pic, and a link..

For a really interesting read, check out http://www.isdm.co.uk/aspin/AspinEssay/essay.htm
I saw someone who built a V-twin motorbike with horizontal rotary valve setups.. It was as big the freakin cylinder.. provided HUGE torque.. didnt idle well, but at full noise it was incredible.
I see dandywarhol linked that PDF, i read that quite a while ago. Ive still got it here on my desktop !.
For my money, the best "currently in mass market" valve setup is the desmo. And ducati are VIOLENTLY opposed to letting anyone license it. Many have tried. Saying that, Ferarri did use it at one stage in some special engine, but id have to double check that. Its just such a graceful setup. You can turn the cam around by hand quite easily, where as valve springs provide quite a hefty lot of resistance.

Another interesting setup is the "radial" setup of MV Agusta. Instead of the valves being aligned with the cam, they are placed of optimum air flow, and as you can see, the stems are NOT parallel to each other, so a tiny cam follower / rocker is used to actuate the valve. Extra mechanical load / weight, BUT the theory is much more sound.

I could talk about this stuff all day.. I love it


