After changing the burnt out points(!), the car at least started okay and ran better. Yesterday evening, he looked at the valve clearances and they were all wound down tight as anything. Setting the proper gaps suddenly saw all the compression readings come up so that he then had three reading about 120 and one reading 30 instead of zero.
It's a bit more 'rattly' than it was before because of the tappets, but I've been an MGB owner before, so I know what tappet noise is like and can put up with it!
It drives a lot better and accelerates like it did before. When it got properly warm, there are still lots of 'rattling' noises from the engine - in line with it still needing piston rings, but at least it's back on the road for now.
So, a big thank you to Max for easing my immediate stress. I've decided that I now need a spare 912 engine (state and condition doesn't matter), so that I can get it rebuilt as a spare. Then I will drop it in and rebuild the matching no's engine when I have the money in the future. At least that way the car stays on the road and I still keep the matching numbers. Anyone know of a 'cheap' engine?

