Finally got the compression check done. Checked with two gauges on each cylinder (one was a shop built gauge made by Charlie, the original owner of the truck) and their differences were not discernible. With engine started and brought to a high idle for each test, all cylinders were 130 to 135 psi. Ambient shop conditions were: 144 ft AMSL(approx), 90 degrees (F), 30.09 inches of mercury and 80 percent humidity... welcome to the Western Shore of Maryland ...
So I will proceed with the original plan and just change the rod bearings. Once I pull the engine. Which may happen sometime between now and the Apocalypse ...

Thanks,
John
Jim -- Apparently the 261 has bad rod bearings.