Nope, the gasket went first then the gasses from 3 and 4 cut the groove.

Actually, the head probably warped due to over heating, causing the gasket to go and without the gasket, you ended up with the compression problem.

I suggest you look very carefully at the valves (or have someone do it for you). They are notorious for burning on these engines because people don't adjust them. As they wear into the head, they get tighter and tighter and finally they don't seal right and the valve gets toasted.

Good Luck,
Michael