A bore scope is always nice to have. Just take out the spark plug and take a peak.
Go ahead and check the compression but take your radiator cap off run up the pressure in each cylinder and let it sit for a few minutes. (Works best if the motor is still a little warm but don't burn yourself)
Bubbles in coolant and you have a bad seal on your head
No bubbles and it's trashed piston rings.
Steady pressure and your good to go
I won't hurt to check but sometimes it's much simpler ie bad plugs, wires, or timing.
Has the valves ever Ben gapped?
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