I got a 2-ton pulley puller (loaner from Autozone) to get the blade adapter off. It worked fine.
After getting the blade adapter off, my friend pulled the head off, cleaned the valves, popped the cylinder out, it looked OK, so did the cylinder bore, so did the rings, reinstalled it (btw a hose clamp works as a ring compressor), put it all back together and it would at least run off of carb cleaner and got 80PSI compression. (Incidentally, I mis-stated the compression in the first post, it was well under 60PSI, I think it was around 20PSI).
Then I got an air filter and a new primer bulb, the primer bulb still wasn't working so he tried cleaning the seat, that just made it start leaking fuel everywhere but at least it ran...(so we go from no fuel in the bowl to fuel leaking out of the bowl..)
I got a new needle and seat today and now it runs fine and doesn't smoke. I still need a new cable for the safety lever, but so far I've spent about $25 in parts. Not bad considering that a new one is around $150...
By the way I put 15W40 HDEO in it.