I'm not trying to jump on anyone here, but here are my theories on compression testing. If I already think I have a problem sometimes I will run a quick test, just pull the plugs and crank. If something is seriously wrong it will show up pretty quick. If I really want to get an accurate reading, like evaluating a newly bought LUV or giving mine a yearly checkup I'll put a bit more effort into it. For the absolute best reading here is my method:
Start the truck and warm it up to normal operating temp
Disconnect power from the fuel pump and let the motor die
Pull the coil wire out of the coil, or better yet disconnect the + side wires
Pull all four plugs, keeping them in order and inspect them
For each cylinder:
Hook up the tester
Mash the gas pedal to the floor
Crank the motor over (I usually do about 8 cycles, you can hear it compress, just enough for the guage to stop climbing basically)
Note the guage reading and repeat once for accuracy before moving to the next hole
Once that is all done, what happens next depends on the readings. If low, a squirt of motor oil in the cylinder and repeat the test. If it comes up a lot, the problem is rings. If it doesn't change much, it is valves or a head/headgasket issue. In that case, I check/reset the valve clearance and retest.
Burning off the fuel is a good idea for two reasons. First, it will pull some of it through the carb, and unburnt fuel will wash down the cylinder walls and could give a bit lower reading. Second, fuel/air mix coming out of the spark plug holes could find a spark and ignite. The cylinder you are testing will be sealed and will draw fuel in just fine. In my experience even open plug holes gets enough air moving through the carb to get gas into the cylinder.
Opening up the throttle is just getting a good airflow into the motor. Propping the choke open is a good idea too if it isn't opened on its own. If you don't you might find that continued cranking will get you a higher and higher reading before it peaks out. With the throttle open wide it shouldn't take more than a few revs for the needle to peak. Seems like most service manuals I've read also give this as one of the steps in a compression test so I've generally stuck by it.
Just a little FYI, A g200 with a g180 head on it apparently gives around 195psi. Imagine my shock when I bought that truck and first ran a comp test on it.

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95 Isuzu Trooper Daily Driver
86 Isuzu Trooper reliable backup
77 LUV 2wd stock beltway blaster (resting)
79 4x4 LUV project: 2.6L, 5spd, 31s (eventually)
MEPR: Man, my 4x4 makes all other LUVs look good
