Runs good , the other 3 cyl. At 120lbs, what do you think ? Jim
First thing that comes to mind, check valve adjustment to see if adjustment is too tight, causing valve to not fully close.
Pour a teaspoon of oil through spark plug hole in head and run compression test again.
If it jumps up, the rings are bad.
Finally, a "Leak-Down Tester" will help you pin-point the problem:
http://www.harborfreight.com/cylinder-leak-down-tester-94190.html
Testimonial: "Thank you, I was told it's a cracked ring, the cost to fix is more then the bike is worth, even through it looks new . I guess I will ride it till it fails ? My guess it could go for quite a few miles yet . Have you had Experience with this ? Thanks Jim"
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