G'day Charlie,
Before you rush in and tear it down completely, have you performed the "Wet" check?
That is after you have done the Dry Compression Check, squirt a couple of pumps of the Oil Can into each cylinder, and after a couple of revolutions, perform the check again. Then, before you finish, re-check the first couple of Cylinders just to check, as these ones won't have had the same revolutions as the latter ones, and therefore the oil mightn't have completely sealed the rings.
This will tell you if it is Rings, or Valves. An immediate raise in the figures will rule out Valves, as the Oil has sealed the Rings, and no, increase will tell you that the Valves are at fault. A Slight increase will indicate that the Valves are the culprit, but also that the Rings are worn.
Bruce.
