Just a quick update. The Westy is at a second shop for a second opinion.
The first mechanic reported the compression and leak down results:
#1 120 psi 10% (source unknown)
#3 80 psi 15% (exhuast vavle)
#2 170 psi
#4 180 psi

It will be interesting to see what the second mechanic finds/recommends.
Second opinions can sometime be very illuminating. The engine seems
about as strong as I expected in a seat of the pants way. The engine
does have 131k so the fact that it would need a little (or alot) of TLC
shounldn't be a big suprise. I'll see.

Sam