No! THat's BAD... I'm not a 16V expert but I beleive the US cars were 9-1 (about 150psi) and the Euro's were 10-1 (about 175 psi).

I'd say you have some bent valves in there:-/

Drop me an email, I can help you out w/ what ever you may need.

Jonathan

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Blue Ridge Mercedes
Jonathan Hodgman
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Enthusiast Service, Restoration & Tuning.
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