AE Harold. wrote: Can I install the poncams, perform a good head job, and maybe a ted head gasket to bump up compression?
yes...
yes... the current strong compression readings do show solid compression rings... it doesn't tell us a lot about the oil control rings, but if she doesn't smoke... she should be good to go. I'm not sure about the "ted" head gasket, but I believe you mean the TRD .8mm. I'm not sure if it is still available, but you should be able to find something similar. Performing chamber work, and machining the heads surface to gain compression will help by adding about 1/2 a point. You will want to add adjustable timing pulleys to properly set the cams with a big head cut
With the compression adders (good compression shortblock, head cut, thin gasket) you will get better compression then it was stock... you will also get more action on the "squish".