those engines won't run right with less 120lbs, 175 is normal compression so theres a problem some where. either the rings are bad, the timing is off or the valves are bad. is the oil fresh? if it had any water sittin' in the bottom and it sucked into the oil pump it could have lost prime. i would squirt some oil in the cylinders and check the compression again, if it gets better you know the rings are shot and you'll need to rebuild it.