Re: outboard questions?
It ought to run with that compression. Were the cylinders dry when the test was made? Squirt some oil in the cylinders and retest. Compression is best read when engine is warm and lubricated.
The only reliable way to increase compression is to replace the rings.
If there is not much cylinder scoring you should be able to get improvement by honing them. Otherwise boring or sleeving may be required to restore compression to original condition.
Look at the "Top Secret File" Thread in this section for lots of helpful information.
