5. Time to check the compression.. 80 PSI per cylinder OUCH! Apply small amount of oil to cylinders 175 PSI...
Rings are toast!
The compression test is indeed not good. However, you should find out if the rings are just stuck in the piston grooves, whereby new standard rings on existing pistons and slight cylinder hone will fix you up.
Also, did you do the test with the engine cold? The comp might be better when warm.
There is also the possibility that some engine run time might free up the rings to get them to press onto the cylinder walls and seal again. If the engine has been sitting a long while the rings glue themselves onto the piston ring lands. On car engines, some Marvel mystery oil was used to good effect for a cure. But, I don't know what this oil would do to a wet cltuch. Maybe nothing, adverse.
If you are certain the rings and cylinder walls are worn out, there is little choice but bore, new pistons and rings.
Cheers,