Is it possible to do a compression test on a motor that is on a stand?

A while back the engine in my 92tsi had a meltdown which turned out to be caused by a cam bearing going out. Anyway about a week ago i got a complete engine off an old friend who had totalled his tsi and heres my predicament I'm poor and been without my talon for way to long I'm not sure what...

what is this plug for? Should it be plugged in or at least have a cap on it? :confused: - :talon: j (I have a 92 TSI)

A few nights ago... I had just got off at work went home and was running sea foam through my pcv line, ... after about 20 minutes or so went up to my garage only to find a huge cloud of smoke and my car not running; the hose going to the overflow on my 92tsi had blown off, my timing belt cover...