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"Compression test with engine running revealed compression around 60 psi. Is that why it seamed to run ok on the highway?"
I'd say yes.
"New sparkplug made no difference. Upon removal, no evidence of it running, plug clean/new."
How long was the spark plug in there?
"Did I drop a valve?"
Perhaps there is a burned valve or a bad head gasket or a hole in the piston.
"Why some compression as running/idle speed?"
I'd guess that the difference is because the engine is turning at 250 rpm when starting vs. 800 rpm when running. The piston is on the compression stroke 2X per second vs. 7X.
"Car has 174K on it and is long overdue for a timing belt job, besides the PCV fix."
Timing belt won't fix a low compression problem.
PCV issue could be related to the lack of compression. It's (the lack of compression) certainly not helping matters any.
"Is there anything else to check or did I just gain a paprts car."
Are you sure your compression tester is working properly?
Throttle wide open when testing?
What was the compression on the other cylinders?
How much oil does it use?
Is there coolant in the oil or vice-versa?
Any chance you tested for combustion gasses in the cooling system?
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