Low compression in number one and number four cylinders

First thing I would do would be a wet compression test. Just squirt some oil into the cylinders and see what you get. I would probably run a leak down test as well, that would give you an idea if it is bad intake or exhaust valves. Then pull the head off. Being it is one and number four I would guess it lost a couple valves or they are sticking open just enough to cause problems.
If the compression does not come up with the added oil and you find leakage at those cylinders through the valves I would say doing the head over would get it to run.

However, as the engine has that high mileage on it I would probably opt to go through it or drop in a re-manufactured engine. Simply to repair any wear that it has.

Okay thank you very much! I could not access air compressor or leak valve today so instead lifted the rocker arm assembly to inspect the camshaft lobes. They look great but some metal shavings right by where the bolts hold the assembly on. I am just assuming already on rebuilding the head anyways so now i will proceed with pulling all of the exterior engine components, in order to access to head. The car is TDC on compression one. Any advice before proceeding?

Take lots of pictures of the hoses, brackets and such. If you have not torn one apart before things can get interesting when you go to assemble them. Make sure you have a good manual for it.