i spent 1100 on various repairs only to find the compression is low in the 2 and 3 cylindars, low like 65 in each, they said pressure is going from one piston to the other. They wont open it up and look until I pay my prior bill, sounds shady. they did offer to do the entire top end rebuild and mill the heads for 300 dollars due to my situation. any advice anyone?

Sounds like a blown head gasket between #2&3.
$300 for a head gasket job, including milling the head is a steal. Most shops around here get around $1100-1500 for that job ( they get around $600-700 just for a gasket replcement ). It sounds like they are doing you right.
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-------Robert, '93 940t, '90 240 wagon, '84 240 diesel (she's sick) , '80 245 diesel

how likely is it that the gasket is blown? The proir owner had it replced recently but the shop thinks it wasnt milled before hand. I heard those blocks dont really crack.

It sounds like they are on the right track. If the gasket was replaced before, and there was an irregularity on the head mating surface that was not milled off, it would very quickly, if not immidiatly blow the gasket again.
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-------Robert, '93 940t, '90 240 wagon, '84 240 diesel (she's sick) , '80 245 diesel

so the gasket was blown and the head is warped, its 12ooo of when the limit is 2000 off, its at a machine shop right now, the 2 center bolts might need to be helicoiled or loctited pretty good, i get a new top end rebuild for 300 dollars... woo hoo.