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I am working on a Beetle that I bought that stopped running, sat up for a while and now I am trying to get it going. I did a compression test and there was no compression on 2 and 3. 1 and 4 only have about 50 lbs. I went back and double checked the timing marks and they are correct. I have fire on all 4 plugs and fuel in all jugs. I am wondering if the headgasket went out or the valves are bad.
 

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Only sure way is to take the head off and see. If you don't see any damage then replace the head gasket and see what happens but without any pressure in 2 of the cylinders there is probably some valve damage and perhaps even some piston damage.
Pull the head and keep us posted.
 
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