thanks for giving us the update on your progress...

compression sounds good in some of those cylinders but i don't think there should be a difference of @ 60psi between any cylinders... this seems like a big gap to me, although others on the forum could probably tell you more...

crush washers should def be replaced every time you remove them...

so you are still having trouble starting on diesel??
revert your system back to as stock as possible and start working out your problems from there...

maybe you've tried these things already but they can't hurt:
eliminate any & all air leaks as a possible contributor to hard starts...
make sure your battery is fully charged and starter is in good shape...
make sure the preglow system is fully operational...
recheck the valves to make sure they are in spec, and adjust as necessary...
probably a good idea to check injection timing at this point too...

double check to make sure you aren't eliminating something obvious by assumption... for example: make sure your fuel valve(s) are working and hooked up correctly, or eliminate them entirely for the moment and just concentrate on getting the diesel system operational.. (maybe you've been trying to start on vegetable oil the whole time accidentaly?)
in fact, maybe you should pull the fuel feed and try to start with fresh diesel in a small auxiliary tank (bottle) under the hood...

if you do get it started, try diesel purge to clean the gunk out of the injectors & fuel system and keep an eye on everything...
if you still can't get it started but you know you are getting fuel to all the cylinders and have good compression... then it's a mystery to me..

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Peugeot PX-10 fixed gear
Public Transportation