Hi John
Gareth is right in his diagnosis about the head gasket but I would strongly recommend they carry out a Cylinder Leakage Test (using compressed air through a gauge hooked up to the cylinder (where the spark plug) to introduce air into the cylinder). The idea is that when you introduce compressed air into the cylinder, if it is head gasket blowing between cylinders then you will lose pressure, if it is wear in the bores/rings then the air will escape into the crankcase and you will hear it through the oil filler cap, if it is escaping through the valves then the air will either come out of the exhaust or inlet manifold, if head gasket through the coolant then you will get bubbles in the coolant tank. Simple test and non-evasive.
If they don't have one of these bits of kit or don't know how to use it then take is somewhere that does, you'll save yourself a fortune on wasted labour & parts.
Compression may also be down due to quality of oil...e.g. washdown due to excessive fuel or weak spark. If the oil smells of fuel then it is washed down and needs replacing urgently.