For sure compression test first, low compression could be a host of problems that you'll have to address by taking it apart and finding out which of these problems it could be, and if you're taking down the top end, you may as well do it right ,split the cases , check the bearings and every thing else. Fix it clean it paint it , reassemble and you'll have not wasted time ,money or effort. Check the tention on the cam chain before you take the cam out so you'll know if it has to be replaced for sure ( should do it anyways since you are already there ) same for the primary drive chain. You only want to spend on this motor once,
It'll be interesting to see what PO thinks "blown up " is.