I can also tell you that when the engine was out I could hear air hissing out of the exhaust port (sounds wet and squeeky) when I turned the crank so the piston was at the top of the sleeve It does get rather hard to crank at the top and for sure there is some decent compression, but I also know due to the sound that there is some leakage around the piston. Of course the engine was at room temperature and this problem may not happen at operating temps as I believe the seal get better.

I guess I am just not 100% convinced this engine is done. Where are the engine gurus out there with their opinions?