Ford Repair: Shuddering and loss of compression, ford aerostar, ford dealership

Question
I have a 96 Ford Aerostar with 130,000 km.While travelling I started to have a loss of power and shuddering at approximate. I stoped to have it looked at and was told that I has no hard codes and that I needed a tune up and a new fuel filter which they did, new spark plugs and new fuel filter first then a new set of wires. The problem was less noticable but still there. The service manager then told me that they were getting ready to close and that I could continue on the trip with out damage to the engine. The day after next, the problem appeared almost as bad as before. I took it to a Ford dealership and was told there were no hard codes which eliminated electrical and sensors and that I needed a new engine, which they could install in 1 day. When I asked what the problem was they told me that the engine was down in compression - 7% on no. 2 and 25% on no. 5 - and had a knock. When I went with the mechanic, I found that the knock was a tick that appeared to be coming from the left head and not a knocking from the block.

At this point, I was afraid to let these people continue to work on the vehicle and proceeded to travel home as I was told by these people that there would be no further damage to the engine.

I knew that I had a problem developing with the valve guides because occasionally, I would get a small puff of blue smoke from the tail pipe the first thing in the morning and I had to top up the oil, about 1 litre a month. This is the only sign of burning oil.

I think that I have a valve problem because of the history with the valve guides, the tick in the top end and if the valves are not closing properly, the compression i believe would be reduced. If the problem was in the bottom end, I believe, there would be a more significant loss of compression and more oil burning.

Since Ford dealer can not decide upon the problem, What do you think?  

Answer
Hello and thanks for the question...I'll try to help.
 I would think that you are right in your assumption. I would have a valve job done. But before that, have the compression re-checked.......wet and dry. This will tell the tech. is the rings are seating or if there is another problem present. Also, they are full of it.....IF they think an engine can be installed in 1 day on an Aerostar...I've done them--they are a pain to do, and get right.
Hope this helps,
Erik