Welcome to the site and welcome to the world of Pilots & Oddys.
I don't know what the compression should be (I don't know squat about 350s) but I would imagine it's probably close to the 150 psi range.
Have you broken in the 350 engine? If you have, how did you do it?
Breaking in a two stroke: (or any engine, for that matter)
Start and warm to operating temp
RUN THE SNOT OUT OF IT.
None of that pussy foot half throttle for 5 miles, easy this, easy that.
You have to build combustion pressure to force the rings to seat. You build combustion pressure by running it HARD.
If you did the easy, slow method, you may have glazed the cylinder slightly and that would aid in lack of sealing ability of the rings.
Since you need to switch back to an OEM head gasket, pull the head and see if the jug looks like it's developed any sort of discoloration (usually a yellowish/brown) around the exhaust side of the jug. If you see this, then it's glazed. - Lightly hone it if you can.
A jug with 10 - 20 minutes of running shouldn't have any signs of anything yet.
What oil and what ratio are you running?
Should be any name brand oil at 32:1. (I prefer 40:1)