Nope, no wet test. I figured that with so little dry, it really didn't make much difference. About the only other thing I can consider is that the compression gauge was trash. I bought it new, so I assumed it was good. I'll stick it on the lawnmower tonight and make sure it works correctly. I tightened is so tight on 4 that I couldn't get it out until I got the head off, so I know it wasn't leaking around the seal. The pressure release valve could have stuck open I suppose.
... On second thought, your valve seal comment makes sense, Chris. When I stopped, the head was so hot it was smoking, but not the block so much. There were small flakes of metal on the tops of the pistons that I assumed were from the rings. I wonder if the metal was from the valves and guides.