You'll get the hang of this pretty quick - this isn't a rocket you're building and those compression numbers are OK for an oldie. Your friend needs to invest in a set of valve cover gaskets - you'll need them before long.
Setting the plug gaps back was the right step - and that's on the road to recovery - but what did they look like at each position? Make a diagram or list if you would and number them out. The cylinders of the Ford / Edsel engine are numbered 1-2-3-4 front to rear on the passenger side and 5-6-7-8 on the driver side (front to rear). Make a note of the plug nose condition - compression figures from earlier, hole by hole, etc. It will give you all sorts of clues as you go.
When I dragged my bird home - I had four rich cylinders and four plugs lean burned - and the pattern matched their common cylinder feeds out of the intake manifold. The manifold is cast in what is known as a "cross-H" - so that as each successive cylinder fires, it is alternately taking the intake charge from one side of the carburetor and then the other. The four lean cylinders led me to a bad idle feed on one side of the carb - and the other side was set-up over-rich to accomodate it. If that's what you find - we'll figure a way to help you through it.
The engine has three ignition advance settings / features.
(1) Initial Advance Setting - is at a low (warm), constant idle speed, checked with your light (clean off the marker and marks on the damper). The vacuum line to the vacuum pot should be disconnected and the opening in the carb sealed up to prevent a vacuum leak. Original factory setting for the Edsel could range from 0° to 6° - all of us have found that the upper end is better. When you have things humming - this can be judiciously raised to something like 10°-12° - but don't go there yet.
(2) Centrifugal Mechanical Advance - when you rev the engine and watch the timing marks indicated at the damper, they should rise smoothly with rpm. The engine has to have its spark "lead" automatically adjusted as rpm increases to start the fire in the cylinders at an ever increasing rate. If this isn't happening - you'll find the point plate has some holes in it - squirt some WD-40 down below there and see if you can get it to loosen up. Otherwise, the thing will need opened up, cleaned and lubricated for proper operation. Tests of the centrifugal advance are done with the vacuum line to the distributor disconnected and the carb port plugged as before.
(3) Vacuum Advance - When the vacuum pot is hooked to manifold vacuum it advances up to a fixed maximum point as full vacuum is reached. Your tests have shown 20° - a reasonable stock performance at elevated vacuum (closed throttle idle). This feature is normally added to the engine to promote economy - and to an extent help reduce operating temperature - but the engine will run without it. Leave this alone for the moment - and get the other two systems to work right - just plug the open port at the carb - the 20° is fine when you need it later.
Get these systems working - and you will be a long way toward a successful tune-up.
Steve Metzger Tucson, Arizona