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First Compression Test

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2G (95-99) T/E 2.0L 4G63 Turbo engine
Compression ratio 8.5:1
Standard compression 178 psi
Service limit 133 psi

Taken directly from vfaq
 
Compression is below service limit on number 2 and out side the range of variance from the high #1 and # 4. I would just keep an eye on if you are burning oil and what not. If the car feels fine, then I wouldn't worry too much. If you plan on keeping the car, save up for a rebuild that will include honing the cylinder walls, new rings and valve stem seals and sleaves.
 
I agree with the last comment. Put about 2 drops of oil in #2 and try the test again with all of the spark plugs out. It should stay the same if everything in that cylinder is in sound condition, if the rings are worn then the oil will help them seal and the compression will go up.
 
Rebuild? No.

I'm willing to bet your valve seals are leaking, causing oil to seep down the valve stems which is crystalizing on the seating area of the exhaust valves, causing them to not seal properly. This is quite common on DSM engines with over 100k. The car is still 100% driveable, but you ARE losing power from the low compression.

A way to diagnose this would be to pull the exhaust manifold away from the head, and peer into the exhaust ports with a flashlight. If ANY of the exhaust valve stems appear wet, you have your answer.

If this is the problem, the only cure would be remove the head, remove the valves, clean them VERY well, lap them back into the head to insure a good seal, and install new valve seals. This would also be a great time to install ARP studs and a new head gasket.
 
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