[Dave Box]

I don't understand why my compression would be that much lower than the suggested 140psi. Could the compression loss be the result of bad crank seals? I used all new seals. Only thing I didn't do was use rtv on the cylinder base gasket. Should I have used the rtv sealant along with the paper gasket between the crankcase and cylinder?

Don't sweat the compression. Your rings have not yet bedded in. After 10 hours or so of running and with a little carbon build up you will be at 140 +. The crank seals have no bearing at all on your cylinder pressure, although we will discuss them later. There is no need to use sealant on the bottom gasket, just make sure they are torqued to 24 foot pounds (the head should be 22 foot pounds)

How do you get the crank seals off of the crank shaft? The new ones I purchased are encased in a metal ring and cant be split apart to get over the shaft that comes out of the engine. Will have to some how remove the fan mount and clutch, and pulley?

Yes I am afraid you missed your opportunity to replace the seals. If you have to change them the engine is going to come out again and you will need to remove the clutch and the flywheel. Both of these are tasks known to drive strong men to tears of impotent rage. The good news is that many, many have done it and when you do you will be able to look your fellow man in the eyes and say "yes I was there". If you do need to do it, shout out and we call all walk you through it.

There is a screw blocking the hole in the top of the reed valve housing.
I took the fuel bowl off and removed the floater pin to access the jet under/above the float. I thoroughly cleaned the jet and the hole it sits in. I noticed that the bolt that holds the fuel bowl to the bottom of the carb has a screw of some sort inside of it so thoroughly cleaned that too... No difference after reinstalling the carb.

The 2PG, like all 2 cycle engines, is remarkably intolerant of air leaks so please be sure that bolt is really sealing the elbow, also check the integrity of the bolts holding the elbow on. You do not specifically mention the nozzles I detailed in my previous answer, you did unscrew and clean them yes?

As I said before, the engine does run, but just barely. Would it be a bad idea to spray wd-40 or carb cleaner on all of the seals while its running to see if I hear a difference in the engines sound or running ability?

You can try to squirt some WD40 onto the rear crankshaft seal and see what happens. You will have no success with the front seal as it is well hidden by the flywheel.

There was a spring attached to a bolt on top of the motor on the bracket where the choke and throttle cables pass through. It wasn't attached to anything, so I removed it. Bad idea?

At this stage the spring is inconsequential. Let's get your engine running first and we can deal with the minutia later.

There are some other issues that we can address to see what is happening with your 2PG.

I don't think you have a blocked muffler as this generally happens once the engine is hot but it might be worth loosening the pipe / muffler bolts to create an air gap and give the exhaust another escape path.

Are you 100% certain that you installed the piston correctly? The symptoms of a reversed piston are an engine that will barely run! You can check by removing the exhaust pipe and getting someone to rotate the engine whilst you peer up into the engine with a flashlight. If you see a port in the skirt you are in the brown stuff.

Worn crankshaft seals can sometimes be diagnosed by running the car in reverse. Sounds crazy but it's true. What happens is that the seals wear in a pattern caused by the engine spending 99% of its running time in forward. In reverse a little slack gets picked up and the seal gets better. Of course this won't work if the seals are completely shot or dry rotted due to inactivity but it cost you nothing to give it a go.

You will appreciate that it is always difficult to diagnose remotely but I hope this answer gives you some pointers. I think at some stage you are going to have to bite the bullet and change those seals if only to eliminate them. The bad news is that the engine is coming out again. The good news is that they are only $7 a pair.
Good Luck
Dave