My engine had been previously rebuilt. An engine can be worn out and still have good compression and a good engine with leaking valves can have bad compression. 125 sounds kinda low, I wouldn't be concerned about it if it were the low reading and there is not more than 15% difference between the lowest and highest reading. Oil pressure is a better indicator of the condition of the lower end. If you have good compression and good oil pressure, go for it! If the engine needs work later your head and Fuel system will still be good, hopefully! <img src="/forums/images/graemlins/cheers.gif" alt="" />