i would'nt rely on comression test,till after you set the valves....
i did a compression check on mine when i bought it,2 cylinders where a little low,but after i looked at the valve clearance i realized why the low compression on some...
as a valve "wears" down,it will sit deeper in the head,slowly taking away the valve clearance gap to zero or beyond...with mine it kept some valves open just abit,when not on the lobe of the cam..bye bye compression...and if keep running it that way,bye bye valves etc.
i would set the valves first,and while you have the valve covers off,check the tension on the timing chain aswell,if it is very loose(doubt it,you can really hear em rattle then)it might have skipped a thooth..
oh,and check the color of your plugs,compare them to this chart>>>
http://www.dansmc.com/Spark_Plugs/Spark_Plugs_catalog.htmlafter setting the valves,check for comression...