Clear fuel lines to and from the pump?
since you have said this problem has only happened since you did the timing belt i would suspect it's got to do with that. do you know what the timing was set to before you did it? even if you loosened the front nut on the hub it won't affect the timing as the hub is taper fit and would need you to pull it off with a puller. did you have the camshaft locked when you pinned the pump hub? was the camshaft sprocket loose when you did the tensioning? try resetting all the timing and drive it again, try .95mm on the pump sprocket as i feel this is much better. I had this engine in my Passat for over 100,000 miles running over 20psi on the K14psi and i had a problem like you described but only on initial cold start up and only if i gave allot of throttle then it would missfire terribly and smoke like crazy for about 2 minutes. Sometimes it would stall but would restart ok, i never managed to find out what was the problem. Being that i can swap in different pumps and injectors i know it wasn't any of those, came to conclusion it was something to do with Turbo Stall maybe? Giles
5 PSI in a cylinder on a VW engine indicates you have a problem. But you already know that. Something is not sealing well. Normally the rings get worn and compressed air goes past the poor seal between the cylinder wall and the piston. In your case, there is a huge loss going on somewhere. Like a hole in the piston or valves that are not sealing. I suggested checking the valve clearances as a way of getting at a valve problem. The cams are designed to push down on a small wafer of metal, a shim, of a given thickness, and still have some amount of clearance between the cam and the metal shim. I was thinking that if the valve is not seated on the head then the spring would be able to push up more on the cam follower and thus reduce the clearance. Maybe my logic is messed up. But if you dropped a valve it may have beat a hole in the top of the piston and that is the real problem.How to check valve clearances. Read the Bentley you should own for this type of work. We on this forum can't possibly be directing you for every major repair. You might find it on the past messages or U Tube but honestly, IF you OWN this car and intend to take care of it get the proper repair manual or you will cost yourself both time and money. Yes, I understand they are about 50 bucks but there is NO BETTER investment you can make for your money.
With the camshaft removed, all valves will be closed. Do the lifters all look the same height?Rotate the crankshaft through two revolutions to ensure that there is no contact from a valve hanging open. After that, test compression on #1 again. Without the valves opening/closing you will not get a normal compression reading but it should be more than 5 psi. If still reading 5, then the next thing I would do is pull the head. The real oddity here is that the issue has come and gone. All the explanations I can think of are fairly far-fetched. Best of them is that a valve is hanging open maybe from a lifter overextending.