Ouch. My gasser has more compression than that. Assuming you've already checked the valve lash and the car hasn't been vegged, I'm thinking that motor is toast.
I would pull the engine and trans as a unit. I think it's a little easier that way.
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Whoever said there's nothing more expensive than a cheap Mercedes never had a cheap Jaguar.
83 300D Turbo with manual conversion, early W126 vented front rotors and H4 headlights 400,xxx miles
08 Suzuki GSX-R600 M4 Slip-on 22,xxx miles
88 Jaguar XJS V12 94,xxx miles. Work in progress.
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