I have a 1988 Ranger with a 2.0. I bought as a project truck. I was told it would run with a new fuel pump. It starts with starting fluid and dies immediately. The compression gauge is averaging about 120 Psi. Time for a new engine right?

 

Most likely time for a new timing belt

It would be very unusual for all the rings to fail equally, or a valve issue in all 4 cylinders
But timing belt effects all cylinders equally if it has slipped

You should be seeing 150-160psi
120psi is low but engine should still start and stay running in summer time, warmer air, full time in Florida
You may have a carb issue, if its getting fuel from the new fuel pump

If its been sitting for awhile you may have bad gas in the tank

 

Excellent insight Ron D. I siphoned the tank.So it sounds like a timing belt and a carb cleaning to start with. Thanks for your time!