Misfire with compression test readings

[no1pony]

First the back story:

I picked up a 100% original one owner 90 Eclipse GS with 115K on it. The car had been sitting for 9 years. The previous owner had started it from time to time drove it a little but for the most part it sat.

The story as told to me was he was going to put it back on the road , bought a new battery etc but he couldn't get it running right. I picked it up on Craigslist for $400. I had it towed home, drained the old gas, replaced the fuel filter, bench tested the injectors, correctly gapped the plugs, checked the timing ,changed the CTS (it was broken off) and changed the oil. Now the car starts up and idle however it has a misfire that comes and goes and it will not idle smoothly.

I did do a compression test and the readings are

#1 144
#2 120
#3 145
#4 144


I ran out of time today but I think my next step would be dropping a little oil in the cylinder and see if @2 goes up. Any thoughts on this? Am I diagnosing this correctly so far?

Ok well I put a few drops of 10w 30 in the #2 cylinder and it pegged the gauge. Makes no sense to me. Any suggestions where to go next?

 

[no1pony]

Well after a lot of reading on this site I have decided to take the head off and see what I have. There is oil leaking from the head gasket in 2 places (1) is at the #4 cyl front and one is under the #2 cyl exhaust port. I have started pulling the head based on procedures found on this site. When I disconnected the hoses from the Tstat housing the blackest coolant I have ever seen came out of there. At this point my plan is to take the head off and see home it looks. Hopefully I will have that task completed tomorrow night. Then I will report back.