Lawn Addict:
Righto, I had a brain-fart regarding the flywheel key. Upon disassembly I had already noticed that the flywheel key was in the key-way.
Also, you correctly quote the line from the service manual regarding compression, however it specifies the minimum compression. My previous comment referred to the fact that the manual addresses solutions for the compression being being too high but, as far as I could find, did not provide a specification for pressure that is considered too high.
My comment may not have been clear regarding the effect of the ACR on the compression. I understand the basic function, but I would expect that, at best, it would cause a lower compression reading if it is venting the cylinders during starting. Even if the ACR was not functioning, and the malfunction prevented the cylinders from venting, the compression would simply read the maximum compression. If it was malfunctioning and it prevented the valves from fully closing, the the compression would read lower than spec. Regardless, it seems to function properly on the bench. The control spring which governs the operation was found to be in place.
I hooked the compression tester directly to an air compressor and it accurately measured the line pressure, set at 125 psi. If there is a problem with my compression measurement, it seems likely it is with my process, though as near as I can tell I am doing it adequately.
Slomo:
I agree with all comments regarding the 180 psi. The service manual mentions crusting around the crown of the pistons as a possible cause for excessive compression, though it does not say what compression is considered excessive. I pulled both pistons and they, along with the cylinders and rings, are in great condition. I'll look at the crankcase breather today.
Thanks all.