[Lynn Eades]

Malcolm, I assume that the MkI* dizzy is the pre 42 divers helmet type.
If you had a crab dizzy it would be the leads that come off the cap from 11.00 o'clock around to 5.00 o'clock.
Another coincidence is that the compressions on the low cylinders are the same on each bank 30,30, and on the other bank 50 and 50. Very unusual.
Calculate that one Tony.

The design of the manifold would let the petrol do that if the engine sat level in the carrier.
What was the situation with the fuel pump (i know you had another thread about it, but wasn't really following it)
These engines don't bend valves, blokes trying to remove valves can bend them.
If your pump was over riding the needle valve I guess it might have washed oil from the valve stems,while it was trying to stay running. (before it was parked up)
As Tony said, It probably would have fixed its self while running.(this time around)
Does this engine run the original carb, or is it running a 94?
If the choke was on, it probably would have flooded, and stalled.

I think the answer is to run it up, get it hot, re do the compression test, dry, then wet. Open the throttle once, and lock it open for the duration of the test. write down what you get, and if it is still the same as before, lift that inlet manifold, and check the clearances.
Then you'll know what has to be done.