I did a wet one on pass side but don't know if I use the right amount of oil but it didn't go up much. How much do I use, cap full or more?
You do not need much, a cap full should be more than enough.
If the numbers did not go up considerably, then I would deffinatly say " do the leak down test ".
The leak down test will tell you where the lost compression is going that way you know what you are up against.
The easiest way to do the leak down test is to use the same hose you used for the compression test, BUT MAKE SURE YOU REMOVE THE SHRADER VALVE FROM THE END ( if you do not do this, no air will travel into the cylinder ).
You really do not need any special gauge to do the test, just put the compression tester line into the spark plug hole ( after removing the valve in the end ) and conect it to an air compressor ( make sure that the cylinder you are testing is at TDC and also make sure the compresser is far enough away that you can hear the air moving thru the motor ). Listen to your Exhaust, take the air intake off and open the throttle body and listen, also take off the oil filler cap and listen, and lastly take off the coolant tank cap and listen.
Air coming from Exhaust = Burnt or damaged Exhaust valves
Air coming from Intake = Burnt or damaged Intake valves
Air coming from oil fill = Bad rings, blown head gasket between cylinders, or warped head
Air coming from coolant tank = blown head gasket or warped head
Basically from the info you are giving I would say that the " short block " ( pistons, rings, bearings, block, ETC. ) is ok, but it does sound like the truck may have been severly overheated and either took out a head gasket or warped a head.
Usually if you have just one or two cylinders with lower numbers I would say bad valves, but to have a full bank with low numbers I am leaning towards a warped head.
If you do have a warped head you have a couple of options. You can take both heads to a machine shop and have them " deck " the head surface ( make it level again ) and while they are at it full vavle job ( roughly $200 per head ).
You can find a set of heads out of a wrecking yard. You can get the heads used from a wrecking yard off of any 5.4L from the same year ( Expy, F150, Super Duty ) as they are all the same ( roughly $ 200 ).
You can buy NEW heads ( this would be the most expensive route around $400 each for after market replacements which are usually remanufactured but come with a 1 yr waranty )
Or if you would like to up the power a little bit you could get a set of heads from a 2000 - 2002 wich are the PI heads. These heads will give you a +/- increase of 30 HP. If you do decide to go this route, you will need the intake off of the same year as well, becuase yours will not line up. If you go this route make sure to get the valve covers as well because in these years they had the Windsor and the Romero ( head mounting is all the same but the valve cover mounting is different ).
