I'd suspect a cracked / broken piston for a reading that low (bad rings are usually something like 50-70 psi, but that's based on my own modest experience).
Next step - do a wet compression check. Just squirt a teaspoon of oil into spark plug hole before doing the check on that cylinder. See if the compression comes up and by how much. If the wet test shows a much higher compression for #1, then it points to bad rings.
Then check the valves. If you have no valve clearance, the valve may not be closing all the way - letting gasses escape and causing the low reading for #1.
Before planning a rebuild or other serious work - I'd double check that you don't have a stuck valve on #1. No clearance -or the valve is getting hung up and not closeing. (if the no 1 cylinder swallow a screw/nut/rock -it could have damaged the valve or seat - preventing a good seal). What did the no 1 spark plug look like?
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MarkB.NV
1991 Tracker, 8valve 1.6L, 5 spd, 4x4, 2 door, soft-top, 106 K miles, w/ 2 in suspension & 2 in body lift, 30x9.5/15 MT tires.
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