You want the small terminal nearest to the battery positive for the compression test.
According to the wiring diagram found in the sticky notes, you are referring to 3 and 6, and that disables the ignition? Also, just wanting to confirm, it says to have the ignition in the running position? Regaurding the fuel line, I still have the VRO pump. I can just disconnect the fuel line going into the pump? And it wont hurt the VRO pump?
You can disable the ignition so it doesn't spark or you can just pull the boots off the spark plugs and use 4 alligator clip jumper wires to ground them to the block. The idea is both to not start the motor and to have somewhere for the current to go since it's not going into the plug. As long as I've got the spark taken care of I don't worry about what the fuel is doing.
The positive goes in one side of the solenoid from the battery to the Large +12v pole, the next one over is the Small +12v from the keyswitch to engage the starter, the next one is the kill switch override, and the next one is the Large positive going out to the starter motor. Jump the Large +12v from in from the battery to the Small +12v starter switch pole. Alligator clip jumper wires from radio shack are useful for this sort of thing. If you don't feel like using a jumper wire on the starter solenoid just have someone turn the key for you.
As long as you've got the kill switch pulled (if you've got one) or else have the spark plug wires grounded then it won't try to start on you.