No compression in #2 cylinder

Put in new points, new condenser, and new plugs and after an hour we had it running but not on all cylinders. Did a quick compression check and we don't have compression in the #2 cylinder. What type of problems could cause this? What steps do I need to do to diagnose this?

Thanks,

Step 1: Remove the gas tank and valve cover and spark plugs. Rotate the engine by hand and make sure all valves go up and down correctly. If they do not, use penetrating oil on the valve stem, maybe tap with a hammer. Continental valve springs are notorious for weakening. I had a Z129 where I could push the valves open with my thumb! If no satisfaction, then:
Step 2: Remove the head and have it examined at a machine shop. They are known to crack. Once you have removed the head, do not crank the or turn the engine until you have secured the sleeves with fender washers and bolts in the head stud holes! You can use short bolts in the holes where the head studs go with fender washers to keep pressure on the cylinder sleeves. Otherwise, it's possible the sleeves will move with the pistons and break the seal with the block.
If the head checks out OK, you're looking at removing the piston to see what the problem is. If there's a hole in it, that should be obvious. But I can't imagine worn rings causing no compression at all!

Good luck!

Larry in Missouri