So, I have the best wife in the world, I had my saw on the coffee table watching the hockey game and she didn't even give me one hairy eyeball...she's the best (no she doesn't read this forum so I'm not trying to get brownie points).
Anyways, good news is that the piston looks pristine, no signs of scoring or anything and even the rings were nice and shiny and smooth so I'm confident that the engine is sound, so thinking the pawn shop owner didn't know how to do the compression test properly. I attached a pic of the piston, so any comments are welcome.
I'm also attaching some pics of the clutch and sprocket area, and now I think (experts please chime in) that this sprocket is beyond worn out and probably the reason why the chain is loosening/tightening on it's own. I removed the sprocket and the needle bearing. The bearing was pretty much bone dry, and I think is not quite right (again correct me if I'm wrong), it seems to have a lot of play in it (posted a pic of the bearing on the snout, then one with me pushing my finger on the side of it to show the slop in the bearing).
Didn't get to remove the clutch assembly yet (it was past my bedtime) to see if I could find any source of bar oil leakage, but will probably fire it up before I do that because obviously being shipped it has no fluids in it.
So experts, lets hear your opinions on things so far.