The experts will chime in tomorrow but if I remember correctly the 5.7 is an interference engine which means the valves open into the space where the pistons travel. What all that means is if you jump a timing chain, say by over revving without a load on the engine, it would put a valve into the combustion chamber when the piston is entering the same space thereby striking the valve. I have never heard of a timing chain jumping a tooth and causing six values on six different cylinders to impact the piston. I don't think that is even possible, but might be. You could have a stuck valve or two but on six cylinders it would be very unlikely in my opinion. A warped head(s) or blown head gasket(s) would explain what you have going on. Only thing I would think that would cause that is an overheating issue. Have you looked at the intake manifold, if so, how does it look? A cracked intake manifold would cause this but it would have to have a crack running from one side to the other to explain the lose of compression on both sides. If the engine was ran very hot it could have destroyed the rings but I would think you should see it on every cylinder at that point and not just six. It would have to be really hot to cause that. I would ask if know if your compression gauge is accurate and the conditions of the test but with that much variation none of that would explain it. When you asked about the leaking riser you have to remember to look for a solution/reason you lost compression on both sides of the engine. Your absolutely right that a leaking riser can cause you problems but to see both fail at the same time is highly improbable. I am sure a lot of people will give you much better information tomorrow but I know what its like waiting for an answer so wanted to give you my thoughts. Also, the light rust is probably from moisture in the cylinders from not being fogged. One that note, do you know if the engine was winterized or if the engine was at least drained by the previous owner after it would not start? You stated it sat for a couple years before you bought it. Please forgive any spelling or grammar errors, it has been a very long day.