Is my new engine screwed?, low compression on #2 Options

[xsboost90]

so im impressed that my new motor starts right up and runs. I put my hand in front of the exhaust to see what the temperature of the exhaust was to see- kinda- running rich/lean or what. I notice that #2 cylinder has no exhaust coming out. I check the plug, drowned. Well, my new plugs were stock plugs, so i switch them all out to the hotter plugs that came in the motor, #2 is drowned immediatly. I check spark, perfect. I check injector pulse, perfect. I did an experiment. I took the injector out, put in a new plug that was perfectly clean- drowned it after a brief start. Ok so where is this "gas" or liquid coming from. Im thinking the case is full of gas. Im scared to check the crankcase though. I have a ghetto compression tester, you push it in and hold it while someone cranks. #1 has like 110lbs roughly, #2 has 60-70lbs, 90lbs if you hold it there a couple seconds. IF my crankcase is full of gas-from cranking and cranking w/o ignition the last couple of days- and i drain it, any chance my compression will come back up and itll stop drowing plugs or do i need to take it back out and rebuild it already????? (IMG:http://www.914world.com/bbs2/html/emoticons/sad.gif)

[xsboost90]

ok, so while checking to make sure the valve adjustment i did was correct, i noticed that the #2 valve rocker "log" was about a quarter inch from the head and both nuts were gone. I guess the PO forgot to tighten that one. Then i thought about it, he had taken that one off for his other motor, and had to put another set of rockers on the day i bought the motor, but they checked the valve adjustment so i figured they had at least tightened the rockers. I went ahead and double checked the rest of them. and my adjustments for them. Everything is AOK and now i have exhaust coming out the tailpipe on all four. Also drained the oil. or should i say the gas w/ a touch of oil. Flushed it out repeatedly and refilled w/ some rotella 15w40 and a new filter. Finally time to start on important things like seats!

cpt tripps, if your still willing to come help w/ the car this weekend im all for it! I need all the help i can get at this point. Going to try and get the parts all painted this week.