$400 tc distributor problem?

Well, that would explain the miss you were having. Hopefully it's just a head gasket, or possibly a stuck/burnt valve hanging open.

These write-ups are kind of scarce on pictures, but the tech is good:
TurboFord FAQ
Also, www.turbotbird.com has a good one in the tech articles section.
Hope this helps. It's really not too hard.

When checking the timing did you pull out the spout connector. There is a wire that hangs off the side of the TFI module connector on the distributor that has a little plug connector in it. This has to be removed in order to check the base timing. If you have done this then all you have to do is loosten the distirbutor bolt and turn the distributor to get your desired timing. The bolt is a 17mm and can be a pain to get a socket on . I usually swap that bolt for one with a 13mm head on it and is the same size and length. It makes life way easier in the future. As long as the crank & cam timing marks are still aligned properly. It doesn't really matter where the #1 spark plug wire is on the cap. As long as the rotor under the cap is in line with whatever post the #1 plug wire is on and you maintain the 1342 firing order. As for your compression problem. If you do a cylinder leak down test it will tell you what your problem is. Head gasket, rings or valves.