Could be a bad valve. Test: With engine running hold a piece of paper to the exhaust pipe. If the paper sucks in to the pipe then you've got a bad valve.
Ring test: Shoot a bit of oil into the clyinder & replace plug. Fire engine & see if it smooths out, then gets rough. If so, then it's a ring. Or check pressure & wait to see if the pressure drops. These are "shadetree" stuff, but pretty good. Sounds like maybe a blown head gasket. Either way looks like you're gonna be pulling at least one head! /forums/images/icons/frown.gif.