CV461S 26504 Will not start No compression?

Was running and shut off.  Would not restart.  When cranking, seemed to "over speed" and would "backfire" occasionally.
 
There is spark and starting ether would not fire it.
 
Did a compression check, which was near zero, but reading the engine manual, there is an auto compression release, so that is useless.   Trying to hunt up a leakdown tester now.
 
Anyway, figured to check valve lash and adjust, so pulled the valve cover and plug and find the exhaust valve clearance is "a lot" and the intake is "nothing".  Went through several engine rotations and the rockers move normally.
 
Looked for a way to adjust lash.  Found none.   Reading the manual, again, (what a concept), seems these engines have hydraulic lifters and there is no adjustment.
 
So now I am not sure what to think.  is the Zero intake clearance part of the compression release, or does it indicate a problem?
 
How to proceed?