Coffee? Now why didn't I think of that???
I am pretty sure the engine is tight because of the new bearings I had pressed in. It was installing and tightening down the rear stationary gear (with its new bearing) that made the engine too tight to turn by hand. My thought is after a couple hours of break in the bearing will fit better and not be as tight.
I followed your advise about zero gap on the side seals. So they fit quite snugly in their groves, while being able to move as a unit. That could also be adding to the tightness and loss of early compression, but if your theory about them quickly being worn down to the right size has any validity, then again I should be in much better shape after a few hours of break-in.
Some extra 2-stroke oil isn't a bad Idea. I'm gonna start buying that stuff by the 55gal drum I think. It must be very dear to those who make it.
Thanks for your post!