300E Oil Consumption
Some else has already mentioned the valve stem seals. Leaky valves could explain the compression loss. Bad valve stem seals will definitely cause high oil comsumption. I changed out mine (88 300SEl) at 85,00mi and cut oil use in half. Your engine is pretty tuff. Unless some let it get low on oil or it severely overheated, I doubt your cylinders are damaged.
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