1slow95

My neighbor and I bought this 2006 Scion xA and you could tell it was really well taken care of super clean car.
it was not running when we bought it.
The guy said it over heated and Never started again.
I compression tested it and #1 had compression and 2,3,4 had maybe 20 psi tops.
So i figured head gasket.
So we had the head milled flat,
Replaced the head gasket torqued the head bolts and it Still only has compression on #1.
We triple checked the timing, it's dead on
We put air to the head and the valves aren't leaking.
The pistons look fine. Turning the motor over the rings seem ok.
Is it possible the deck on the block is that warped?
From what i read the VVT-I shouldn't Be able to be that far off?