Re: no compression
I think I have the answer here. To start, I'll explain my reasoning:
This is a new outboard for the current owner. It has zero compression after a new head gasket, but no evidence of severe damage in the cylinders. No holed pistons, no severe scoring of cylinder walls. In the test before removing the head, it has some, but not much compression, so the guage is at least measuring compression to some degree, whether accurately or not.
In that case, any rotation of the crankshaft through the compression stroke would give some compression reading.
What's going on here is that, while the flywheel is rotating, the crankshaft is not, or at least is not rotating through a compression cycle on the cylinders. That it showed some compression earlier only means that it made it partway through a compression cycle on that cylinder.
This outboard is either missing its flywheel/crankshaft key or that key has sheared completely. I'm betting that the previous owner had the flywheel off in a repair attempt, then gave up on the outboard. He then reassembled it, possibly leaving the key out entirely. Even if he put the key back in, he didn't even tighten the nut solidly, much less torque it properly.
So, the new owner gets the thing. When he performs the compression test the crankshaft rotates until it gets partway through the compression cycle on the cylinder under test, then the flywheel slips, never allowing the crankshaft to complete the revolution. The fact that the new owner left two plugs in and only removed one means that the additional cylinders cause the flywheel to slip even more. When he replaced the head gasket and tried again, the flywheel was loose enough not to even turn the crank at all against the friction of the rings on the cylinders...so...no compression.
I thought about this a long time last night, and it's the only conclusion I could come to. I'm betting that if the new owner puts a wrench on the flywheel nut, he'll find out that it's just finger tight or maybe a little tighter. When he pulls the flywheel, I'm betting that he finds no key in there at all, or one that has sheared cleanly.
What do you guys think? It's easy enough to find out.