Ok guys, sorry I let this lay for a while but other work doesn't wait.
Compression Test showed 360, 380, 360; a few lbs difference when small amount of 10W oil is added to each.
I'll try to answer all your questions above. The engine was old and I've recently found it was originally in a mower; brand unknown. The engine was used up and a local boy overhauled it. He replaced the head since on the original exhaust gases had burned through the exhaust port. At the time of the rebuild a new injection pump was added along with new bearings and rings. I'm pretty sure all pistons were replaced. After less than 1000 miles the engine failed. It was disassembled and the center cylinder had a large hole and piston was in even worse shape; unknown cause, lots of guesses about too little fuel, then too much fuel, then pistons not fitted properly. No reason was actually found. At this point the engine was in 100 pieces scattered on a concrete shop floor and stayed there for a couple of years. I came on the scene and traded for the engine. There was a time when I would have overhauled it myself but health problems have a tendency to slow me down. I've now got just two speeds, slow and stop. I still wanted to see the engine run and hear that Kubota sound so I found a shop that was willing to overhaul it. I took the pieces to the machinist who would be the main rebuilder; 30 years experience building race engines. We got along great and he proved to me he knew a lot about engines in general. Later, when things didn't go quite right, it was hard for me to believe that he had made a mistake but finally came to the conclusion that everybody makes mistakes and he, after all, was not well versed in Kubota (or any other diesel) engines. After getting the engine placed into its new home and back in my shop I found that the engine would start readily using glow plugs for 5 seconds. It would idle smoothly but the engine lacked power and couldn't pull a load. I went through the entire fuel system, had the injection pump and injectors checked by Diesel Injection Service and all checked well. I checked the compression and there was the problem as you can still see above. I checked the valves; no problem. Rings seem to be seated well considering the engine has just about 20 hours on it and that the oil added during compression tests didn't make much difference. I guessed that it was out on valve timing, but as I found later the engine would not tolerate much of that without the valves contacting the pistons. I finally got smart and went to my local Kubota dealer. Shop foreman and partial owner put me off for about a year because his top mechanic had a serious accident and didn't come back to work until this past month. Mechanic came to my place and listened to the engine; said it sounded "flat", which translates to little power. Dealer didn't want to mess with it. I can understand that and can't blame him; too many fingers have been in the pie. The mechanic, however, said he can take it to his own shop and fix it in his spare time. His first guess was that the wrong pistons could have been installed at the first overhaul. This would make sense and explain the lack of compression, power, etc., and would also explain why the latest rebuilder, the machinist and race engine builder, might have missed the problem, not being a Kubota expert and simply matching the damaged piston with the other two undamaged pistons from the first rebuild. My contribution is that I'm pretty sure the shim and the head gasket both were installed in the latest rebuild and I'm hoping that is the problem since the head has never been shaved. That is the reason for my original question above as to how much compression might be lost if this is the case. That's about the end of the story. Hopefully this genuine Kubota expert will finally fix my engine.