QUESTIONS 4ksq compression check

["Ken Keith" <auditude@impulsedata.net>]

I need you guy's and gal's (gal'ses?) help:

I'm going to check the compression on the 4ksq today.  This is the 
one that was bought from the PO with an overheated engine.  I'm 
trying to get all the information I can about the motor before I tear 
into it.

I expect the minimum damage would be a blown head gasket, then 
the next step up would be a warped/cracked head, and last in 
probability and desirability, a cracked or otherwise damaged block. 
Is this correct?

Anyway, I know I'm supposed to ground the main wire from the coil 
(the one that goes to the center of the dist cap), right?  Also, I'm 
wondering about the other wiring, because I have disconnected 
much of it in preparation to pull the motor.

What do I have to hook up again to prevent frying or damaging 
something?

If someone could reply via direct email soon, that would be helpful, 
as I would like to do this today.

I stopped short of actually turning it over, because I remembered 
about the coil wire, and had to go home to get the Bentley anyway.

I had to put the starter back in and stuff.

That reminds me, which wire goes on which terminal on the 
starter?  There is a red one and a dark (dirty, nasty) one.

The dark one is very corroded, all green and frail (basically fried 
looking).  Only a few strands are still connected.  Where should I 
splice a replacement wire in for this?  The harness goes up by the 
battery and behind it, and I don't want to cut into the sheath just to 
look around.  I want to just cut it where I will bypass the nasty wire.

Thanks for all the help!

Ken