It sounds like you need a valve job. Sticking valves can cause the problems you're having, and the somewhat low compression is another symptom. How much mileage does the engine have? If it's a high-miler that hasn't been built lately, you'll be better off doing a complete engine job, no matter which engine you choose to use. The 292 is going to need a complete makeover, too, pistons, cam, reground crank, etc., so the cost of building either one will be similar. Parts for the 292 will probably cost more than the 350. Good luck!
Jerry
