It's when the valves have too much clearance that the compression release doesn't work. Are you sure you set the valves correctly? This time, don't put the valve cover back on before you try it to see if the problem is fixed.
This assumes your compression release is a small bump on the exhaust lobe, and that may not be a good assumption at all. Hopefully one of the pros on here who is familiar with your engine (I'm not) will help out.