Joined: Mar 2008
Location: Prairie Village
1st question I can answer with more knowledge. The rest, not so much.
You'll need a compression tester (of course), With a good, charged battery you'll need to disable the fuel pump and ignition system so it doesn't actually spray fuel and spark while testing. Remove all the spark plugs from the engine. Install the compression tester into the first cylinder, and while holding open the throttle, crank the engine over several times. Repeat for the remaining cylinders, cranking the same number of times and for the same length of time on each cylinder. Though don't let the starter get too overloaded at any one time. Jot down the pressure reading for each cylinder, all should be within 10% or so of each other. The actual PSI can vary based on many outside factors. Though as a general rule, should at least be over 100. If any are out of that range, squirt a bit of oil through the spark plug hole into the cylinder that is off.
Test that cylinder again and see if the compression has gone up. The oil should temporarily seal the rings, and confirm whether they are bad.
Q 3. Basically a complete tear down of the engine. I'll let someone else fill in the details.