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Thanks for the ideas for preventing engine rotation. I can make one those work!
I was not getting air bubbles in the radiator. The air coming out of #3 spark plug hole was loud enough that I couldn't hear any air leaking from the carb. I did have the throttle wide open when doing the test.
I'm a bit perplexed by a warped head/leaking gasket being the cause. Wouldn't the compression be low in BOTH #2 and #3 if air is leaking from one cylinder to the other? I have 50+ psi in #3 and 15 in #2. I don't know very much about this and am looking to get educated.
My theory about valve issues in #2 was based on the assumption that the intake valve for #3 could be open while air is leaking out of #2 through an improperly seated intake valve. This was based on review of the valve clearance setting instructions in Les Andrews' book which shows both valves for #2 closed while intake for #3 is open. Am I misreading this information?
Thanks again!