One thing I noticed was there's fuel coming out of #2. Not sure what is going on there. But I imagine once I get the head out I'll know.

 

taro taro taro,,,,according to what you have told us ,,,,,,,, stop right there and replace the engine , if you want to keep on driving this car ,
ot get another car altogether ..

 

So I got the head off and discovered that one of the intake valves wasn't closing. It was pushing fuel into #2. explaining the reduction in compression. So tomorrow I reassemble the darn thing and we're back in business. Thanks for all your help.