CGT,
Cheers for the advice...
There are no oil leaks or smoke etc. Apparently the compression is only below par on 3 cylinders and of those, only 1 is particularly "low".
I don't think the 5k price included all new pistons (!) - but it did include the cylinder work (not sure about the coating).
Having run the car for a few weeks now, I am now leaning to not doing anything for the time being as it actuallys runs pretty damn well - in fact it still has a lot of pulling power (even though i do not know how MUCH power i should be getting for this kind of car).
Another mechanic i saw (for 2nd/3rd opinion) also advised to run the car to Malaysia (at high speed) with some fuel additive that is designed to to burn off any carbon deposits. Is this something worth doing ??