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Your problem isn't valve lash. It's compression. If the tester and your procedure can be trusted, the engine is damaged in one way or another. At this point you might run the test again, warm engine, all plugs out, throttle blocked open a bit, and be sure to crank the same number of turns per cylinder. If those numbers come up again, yank the head.
Then you can check the valves, and roll the engine over and look at the bores. You may very well have a couple of broken compression rings, and that will show up as vertical scratches in the walls.
Sounds like a rebuild to me.
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