Dieing Engine, Problems on my 96. (Symptoms included here)

[MJP]

The other day, driving normally off a red light, I heard a slight noise
that sounded like valve clatter.  Almost the exact same noise from
"Gone in 60 Seconds" when Elanore the Mustang stalled while it was
being chased at the end.  Recall the Noise?  Ok.  It happed a few times
and I really didn't think much of it, I check the oil and it was about
1/4 Quart Low.  I added the oil that day when I got home and all was
well.

Two days later I was coming home from work (1am-ish) off one of the
Toll Roads here in Orlando, the 408. For a good 15 miles I was rolling
with a few other cars around 95 MPH or so. When we hit the woodsy area
we hit spirts of 110 or there about, nothing major on a long straight
well light Florida Highway.  Coming off one of those top end spurts I
let off the gas and coasted to my exit, down shifted to 4th, then 3rd.
Pulling the car out of 3rd to neutral, the car stalls.  At first I
thought it was just the lightweight  flywheel.  Slowing to about 20mph
or so I fired her back up to hear the worst rattle/knocking sound.  On
lower RMP's it is fine, but about 3000 or so, it has a terrible pissed
off cat purr.  Needless to say, I limped her home.

Got her in the garage, and she smelt of burnt oil.  I looked under the
car, no leaks.  I checked the oil, about 2 quarts low.  Yikes.  let her
cool and jacked her up. I pulled the plugs and 1 and 2 were a dark
brownish black, 3 and 4 looked like a struck match.

Compression check came back as follows.

#1, moderate build, 120 to 150, and 170 topped out.
#2, medium build, 100 to 120, topped at 150 topped out.
#3, slow graddual build, 90 to 110 to 125 topped out.
#4, slow build, 90 to 100 to 120 topped out.

On my dirve home the initial thought was I Spun a Bearing, recalling
the Mik Jez DET adventures a year or 2 back. Then I thought Rod, or
Stuck Valves.  With the compression and toasted spark plugs I am
thinking Piston Rings and or head gasket???  Suggestions?

Russell, If your out there or if any list members feel like giving me a
Jingle, PLEASE CALL!
407.275.1953.
Call any time, my wife sleeps like a rock.

In the mean time, Since the SE-R was just paid off, I purchased a litte
VW GTI that I know I won't want to modify. (I Hope) I got the 1.8T.

Thanks List, any and all suggestions are welcome!

Thanks,

Michael Palumbo
407.275.1953
Orlando Florida.