Q1)1-3-4-2 firing order means start with wire 1 on the bottom and rotate clockwise 1-3-4-2 correct?
Q2)How do I check the fuel rail? I do hear the fuel pump run.
Q3)Do I still check the main relay and how?

Q1. I think your wires are plugged into the distributor incorrectly. When the cap is mounted on the distributor, it should be:

1 3

2 4

1 and 2 are along the curved portion of the distributor cap and 3 and 4 are along the opposite straight edge.

Q2. Disconnect the line going to the rail and check for fuel. Remember to disconnect the negative. Battery terminal before fooling around fuel filter or fuel rail.

Q3. If your CEL comes on and goes off after 2 seconds and you can hear the fuel pump run, then your main relay should be OK--at least for starting. Sometimes they act up after they get hot, but I don't think the main relay is your problem.

I did the compression test(I think) I started by taking out the #1 valve spark plug, hooked up the tester, had someone crank it. Tested at #1-65, #2-65, #3-65,and #4-55. After I tested each cylinder, I put each spark plug back with 18 ftlbs. Before removing the next one and testing it. Did I do it right? If so what do I need to do to get the compression right. Also is it true that, because I had a vale job done on the car it will now be an "oil burner"?

I don't think it will necessarily be an oil burner because you had the valves done at all. It depends on the quality of the workmanship. However, those compression readings are way below the acceptable minimum (135 psi). I think that's where the problem is.

VERY IMPORTANT NOTE: I wouldn't tighten those plugs over 13 lb-ft or 156 lb-in. At 18 lb-ft, you risk stripping the threads! If you use half a pea-size drop of anti-seize, which is a lubricant, you should not tighten over 10.5 lb-ft or 126 lb-in.

Did you crank the engine over at least 7 compression strokes? In a healthy engine, the compression should build quickly. Low compression on the first stroke, followed by gradually increasing pressure on subsequent strokes, indicates worn piston rings. Low compression readings on the first stroke, which doesn't build during successive compression strokes, indicates leaking valves or a blown head gasket (could also be a cracked head). Since you have adjacent cylinders with equally low compression, there's a good chance the head gasket is the problem. That's my analysis. Let me know what you think.

I just had the head checked, they said it was good. Had them do a valve job and resurfacing, and put a new gasket on. Should I have oiled the gasket or anything before placing it to ensure a good seal?

Checked today? With gaskets, you need to follow the manufacturer's instructions exactly.

Normally, you tighten the cylinder head bolts in two steps (and in the proper order), applying clean engine oil on the bolt threads and washer contact surface:

1st step: 22 lb-ft
2nd step: 47 lb-ft, for D15B7; 53 lb-ft, for D16Z6 and D15Z1 engine.

Tightening sequence for D15B7 engine:

8,6,2,4,10
9,3,1,5,07

Head gaskets I have installed have been installed dry. That doesn't mean your's should be--you have to check. ALWAYS USE A NEW CYLINDER HEAD GASKET.

Reflecting on everything, what does your gut tell you the problem is?

My gut is in a big knot about this one. Looking back I think where I went wrong was with the timing belt. I think it is possible that I did not do TDC correctly, then by trying to start it , possibly bent some valves, causing the lack of compression.
The deal is I am a 30 yr. old Builder in the Seabees and am rapidly approaching a deployment. I'm out of time and reluctantly have to suck it up and learn a valuable lesson. I didn't want to pay $800+ for somebody to do work that I know I am capable of. I had a Yamaha R6 that I laid down and broke off the magneto and basically ripped the entire rear subframe off. The shop quoted me $2200 to start. I bought the service manual, basic engine parts, and Ebay-ed the rest and saved about $1500. I had no dillusion that the Honda would be as easy, but I figured, I can learn this. So I went and got a Hayne's manual and went to town. In hindsight I really do think I could do it again, but I would likely have pulled the engine and attempted a complete rebuild of the cylinders, head, and all. If I had time I would do just that. But I don't have a choice but to let it go for now. I do want to thank you for all your time and info. I will come looking for you when it is time to restore my 60's or 70's Camaro. For now I'll stick to the woodworking.

Thanks for the opportunity to have helped you--I enjoyed it. Take care.