cherry bomb,
before you run a compression test - adjust all your valves to make sure they are set properly - that will give you a good start for reading properly.
For a more definite answer on whether it is rings or valves - a leak down test will provide more information.....basically you lock the cylinder being tested at TDC and apply air pressure through the spark plug hole with a threaded adapter, and then measure the drop in pressure .. sometime it is easily heard coming out the exhaust (exhaust valve), or the carb throat (inlet valve) or through the crankcase vent (rings).. or all 3 occur...