I got my hands on a 12 point socket set.  Turns out I made an error when looking at the head bolts, they are actually twelve pointed and not 8 as I had thought. 
Lots of work today.  The head is off
Here is the old gasket.  It wasn’t in too bad of shape to tell the truth.  No obvious points of concern.  And that concerns me.
Here is a shot of inside cylinder #3 where I was getting bad compression. No signs of  wear on the cylinder wall.  
The only difference between cylinder 3 and the rest of the cylinders was that the carbon inside of it was DRY.  The other three cylinders were all WET.  What could that possibly mean? Heres a photo of cylinder #2 to compare.
The below photo is an example of the carbon build up on the valves.  What is most interesting is that the carbon build up on cylinders #1 and #2 was more so than the build up on #3 and #4. Below is a shot of the worst, #2.   
Could it be that cylinder 3 was being starved of oil somehow?  All the oil feed lines look to be clean and in good shape.  The coolant lines were rather clogged, and one of cylinder #3’s coolant passages was completely blocked.
Anybody have input on why C3 would have been dry?
Good news is that the head is flat.  All surfaces showed no signs of warp.  For now Im just working in getting everything clean, and finding a reason why C3 is dry.