Make sure you are really on TDC before power stroke.Check timing mark on balancer, should be at zero. Cam mark should be at 6 o-clock, crank at 12 o-clock.By the sounds of your valves, maybe you set up wrong the first time?
I would turn the engine counter clock wise (looking at the engine from the front) 45 degrees or so then turn it clock wise and see if air is being forced out of the #1 spark plug. If it is then you are on #1 compression stroke. The cam mark should be at 6 o-clock on TDC #1 compression stroke, not 12, so if you are at TDC #1 compression stroke and cam mark is at 12 it needs to be changed to 6 o-clock.