I would agree with david, first find out the cause of loss of compression because without that information there is no way of knowing whether option one is even possible (let alone affordable).
any more info would help...
has it been a gradual change (getting harder and harder to start of a long time) or sudden change (loud bang and then would't restart).
how did the engine seem when last run,
how is the oil (has it got water in it, is there enough oil)
when you try and start it is there any sign of life at all (any smoke from exhaust, any pops).
can you hear the starter turning through compression or does it just whirr smoothly with no change in pitch.
does the engine rattle or clank when turned over.