Well I found the problem :-(

Took off the lower plenum and got to the spark plugs. Cyl 3 (if that's the middle on the passenger side) had a spark plug mashed into the tip.

The compression test showed 130-135 on all cyl (I am at 9200 feet) except for that cyl with the mashed plug. It has at 5...thus it looks like a bad valve or rings. This engine had the butterfly valves fail on it and I was able to salvage the machine but maybe part of the butterfly valve bounced around till it got in the way. Just my guess.

Pull the valve cover next?

I bought this machine with the purpose of putting the 6g72TT in. From what I know it will bolt up to the tranny. I may get started on this or rebuild the current motor. I can't seem to find anyone who has gone this swap...anyone know of any info that may be useful?