Did you install new valves, by any chance? Or springs? What are the valve spring free lengths, and installed heights? I would have done a leakdown test immediately after finding the low compression numbers. Something here just flat isn't adding up.
Your ring gaps, if they are in the .025"-.030" range, are way too large, but not to the point to give you compression numbers as low as that. Did you by any chance have the head milled significantly. ie more than .050", and use stock pushreods?
We can chase our tails on-line on this one forever!
Dave, when the valves aren't open, don't you just assume 14.7 as ambient, and multiply by the compression ratio to get the proper numbers?
ONLY JOKING, FOLKS1
Jeff