I am thinking engine oil lifters are bleeding down, causing no compression! on 1995 Toyota Corolla

I just cheaply bought a 1995 Toyota Corolla 1.8 with 170,000 miles super clean, was told car was parked for awhile. Problem is most of the time after being parked for 2 or 3 hrs , vehicle does not start at times. Checked out cylinder compression when dont start and it had none, after cranking for 1 or 2 minutes car starts missing and making lifter noise, then after about 3 to 5 minutes clears up and runs PERFECT as long as I don't let it sit 2 to 3 hrs again. Engine has no blowby and dont smoke. Funny thing is that sometimes I can shut it off leave it overnight and, not often, will start right up. No other vehicle history is known to me. Also has an EGR Valve code ,where do I start

by in Mcallen, TX on December 05, 2010
2 answers 2 comments
ANSWER by on December 05, 2010
The valves in your engine have "shim" adjusted valves no hydraulic self adjusting valves. Do you have spark and fuel when the engine won't start? A cylinder leakage test (putting air into a cylinder) is a more valid test when checking why a engine looses compression.
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COMMENT by on December 07, 2010
Thanks Mr. Mannion, we'll ck into it. Appreciate the quick response. By the way, it does have spark and fuel . A friend knows a little about cars and says he thinks engine is too clean that it looks like they worked on engine it has signs of new gaskets. Thanks again!
ANSWER by on December 06, 2010
If the EGR valve stuck in the open position it could cause the hard start / no start situation. I'd eliminate the EGR problem first. Zee
COMMENT by on December 07, 2010
Thanks ZeeTech , appreciate the quick response, will look into EGR problem