lifters ticking and low compression

[Josh2222]

all right, here's the deal... i had a worn through (hole) in the timing cover. at first i thought it was a bad head gasket because i was losing coolant. so i pulled the whole head off and found the gasket was fine. i took the head to get pressure checked and it passed but it was warped so they surfaced it. i got the cover off and welded back together and i put it all back together with new gaskets and guides. now im have a problem... first the oil still has a lot of water in it? second, my lifters wont fully extend so i have a lovely ticking/tapping when the motor is running. and third i checked the compression and it was 70, 70, 80, 80... yikes! y is it so low? y do i still have water in the oil when i fixed the hole and new gaskets ect.? im cleaning my rocker arm shafts and was going to try to inject some oil into them to see if they would tighten up. or soak them in oil? any help would be appreciated..