Oil In Cylinder What Next?

[InitialE30]

My 86 325 has been running rough this week. I suspected a vacuum leak, which may still exist, but decided to start with compression test and pulling the plugs. The results are not good.

The plugs look lean, and cylinder 2 is a mess.

Question: What are my suggested next steps to diagnosing and/or repairing the oil in the cylinder issue?

Compression test:
1: 145
2: 110 (one with dirty spark plug)
3: 80
4: 110
5: 140
6: 154

Thanks for any tips!

[ak-]

Leakdown test to see if it's leaking from the valvetrain or bottom end.
If it's the head/valves/whatever, it looks like a good time to upgrade to an 885 head with 325i electronics.

Bottom end, rings, then it's up to you what you'd like to do..
If this car is nothing but a driver from point A to point B, I'd just keep driving it till you're ready to figure things out.. I've driven an E30 with 0 compression in a cylinder for months because I had to.

[InitialE30]

Thanks I will check out a leak down test. This is my daily beater. My sputtering running under acceleration issue I was originally out to fix might actually might be something entirely unrelated to the compression and bad cylinder.

The car revs find but under real throttle it kinda sputters at a high frequency and lacks the power it had last week.