LA 318 compression numbers

did you try squirting a few squirts of oil in each cylinder and retesting the compression? If the numbers come up, then you have some wear in the rings/bores. If they stay the same, you may need to look at the valves.

I usually see 100 to 120 on well used 318's. These numbers are really close from one cylinder to the other. How many miles are on it?

If he wants to keep run ning it, throw some fresh plugs and wires on it.

If it has 100k or more, throw a nice double roller timing chain on it (Mancini Racing sells a nice Edelbrock true roller double roller for like $65). The stock chains are crap and stretch/chip teeth real easy. I've gained up to 2 MPG by replacing an old worn out timing chain with a good double roller (at least equal to a stock 340 chain). At today's gas prices, it would pay back pretty quickly.