If the engine has not run in a year, you would expect it to be a bit lower.  There will be some rust/corrosion film on the parts.  Perhaps not enough to cause a problem, but it will be there.  Once the engine is up and running for a while, the numbers will improve.  The fact that a slight rotation changes the reading that much, shows the rings are not seating properly.  I would not be concerned at this point. 

Presently, it's a crap shoot.   To be certain you would tear down the engine and do a rebuild.  But considering the time it sat out of the car, I think I would put it in, fire it up, and go drive a while.   After 100 miles or so I would recheck the engine, and reasses what I wanted to do.   It may be fine.   It may be good enough.  You may want to pull it back out and go over the whole thing.

IF it's good, you win.  If you need to pull it back out, you have lost a lot of labor and some fluids.  Personally I would give it a try.  But that's up to you and your budget.  And don't forget your long term plans.  Are you going to modify it later?  All things to be considered.

thankz again for the expert opinions.....  yesterday i seriously thought about taking the engine apart for a rebuild.. but now, reading kstyer's opinion i am changing my mind again considering to put the engine back in and see after a 100 miles  what the test results show.

before that year the engine is pulled out now i only drove it for about 50 miles ( short trips) in a period of 6 months  after i bought it and before that the car has been in storage for hmm.. think about 4-5 years  , ten years ago the engine was rebuild if the papers( bills) don't lie.

at the moment i think most of the leakage i can hear is inside (down)the engine (  hear it cause the front cover is off)

the engine has an edelbrock performer camshaft, edelbrock aliminium intake and headers..if rebuilding i think i will stick to these things and not modifying it further..... long term plans are rebuilding another car..  thinking bout  69er :)

art-corvette