So here's the story. A friend of mine has an 86 se with the 2.8 and he had someone do a valve job because he had a dead miss on cylinder 4. No compression. a little squirt of oil didn't help anything.
He had the car towed to my house after the guy had everything I installed and couldn't get it to run. I pulled the valve covers off and properly set the valve lash.(he had the valves about 2 turns too tight) I got it to run but I have a misfire on cylinder 4 and 5. Did a compression test on all the cylinders. 120 on all except cylinder 3, I have 100. If I pull the plugs out of 4 and 5 there's fuel on them. Connected a spark tester to wires and I have good spark. Changed the plugs just for peace of mind. Still no good.
I had the heads on my 460 in my jet boat ported and the guy installed super-high-tech valve seals.....The exhaust valves got stuck open and I had to drive back 10 miles to the launch ramp on 4 cylinders (Hey, It proved that you could run a jet boat engine with DOD!)......The valves need a slight amount of oil seeping by to lubricate them.....Might be your problem; A leak-down will show you if it's that....(Actually, just a compression test should show that!)
Yeah, did a static compression test. 120 on all except 3, which was 100. Did a dynamic (running) compression test, got between 40-50 at idle, and about 80 at a throttle snap.
You can never go wrong using a vacuum gauge. Usually that is a good way to tell what is going on inside the engine. Wanted to save myself some typing so here is a link to a good article on using a vacuum gauge to diagnose engine issues...
I'm assuming the injectors are firing because there is fuel on the plugs, and if you listen to the injectors while it's running you can hear them click.
timing is set to 10*. when i got the car the distributor was out a tooth and the timing was way off... but i fixed that