Right...what were the compression test results - can you ask him?
Numbers can vary depending on the test equipment, the way you do the procedure and what engine it is. Plus there is a Honda service limit in the variation between cylinders, so there is scope to be out a little on some cylinders. I've yet to see someone with consistent pressure across all four cylinders.
When you find a cylinder (or more) down on pressure its finding out where that pressure is going. Up into the head of the engine through the valves or down into the main block past the piston rings. Or worse...headgasket - but that would be more obvious in other ways (don't freak out!

). The wet test by adding the oil into the chambers is to help seal the piston rings, redo the test and see if the compression improves = rings. If it doesn't improve = valves/seats,etc.
But all that to one side, a leak down test will show a better picture of a loss of pressure and is the test he needs to do to back up the thought of a new engine. A leak down test requires more specialist equipment and measures the pressure of each cylinder over time. It will let you know how badly the loss is compared to a compression test.
Hope that helps you out. And please don't apologise for lack of engine knowledge - we're here to help bud.
