First, the ASP 91 2S I had had very little compression when turned over by hand, but it would run like a scalded dog once the fire was lit. Compression only tells you part of the story. Sure, the cylinder/lining fit could be worn a little, but that doesn't make it useless. As for it dying, it sounds lean to me. If it doesn't idle well, and dies when pitched upward, try richening the low end some. Make small adjustments until you get it to idle and transition good, then hold the nose up while at WOT on the ground and see if the RPM's drop. If they don't, then you have it set right. Make sure there are no air leaks anywhere causing the lean condition. If there are air leaks around the carb housing, or in a fuel line somewhere, then you will chase the needle settings all over the place and it will never settle down and idle right.
I would get the mixture fixed before I counted the engine as out.