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i'm thinking the pushrod will bend before the valve------maybe.Have you removed the valve covers?
Can you post a pic of the spark plugs in order by cylinder - especially #5 & #7, but prefer all of them if you can. Plan on performing a cylinder leak-down test to focus your diagnosis, before teardown. In the meantime, remove the left valve cover and inspect for bent/loose pushrods and/or valves hanging open, as suggested. Your compression test indicates that #7 is the cylinder with possible valve issues. The "dull knock" could be a piece of spark plug embedded in the crown of the piston or a valve kissing the crown. Low compression on cylinder 5 also maybe due to poor valve sealing, but could just as easily result from compression pushing past the head gasket bridge between #5 and #7. Since cylinders 5 and 7 don't share a common plane of the intake manifold, it is unlikely that debris from #7 ricocheted into #5. Essentially, you might have more than one problem. Ultimately, however, you will need to pull the cylinder head to see exactly what occurred and determine the extent of damage. Because of the accumulated mileage, it would be prudent to check valve lift/cam wear while you are at it.
Was the "heavy brownish-gray corrosion" a fluffy, sort of glazed appearing coke buildup coating the insulators and electrodes? Any idea of how many miles were on the plugs? You weren't clear on this one point - was the ground electrode burned/eroded away or physically broken off? Any other evidence that the electrodes were hammered, such as electrode dimpling or a fractured/shattered insulator?
Opinion: The spark plugs are running much too hot - #7 is torched from detonation, not a simple case of erosion from chamber swirl. It appears that #7 was not properly seated, which could have caused it to retain excessive heat to the point of preignition and melting. Nonetheless, switch to AC #CR42TS spark plugs and chase all of the spark plug holes. Check the base ignition timing with ESC bypassed, check fuel pressure, and check for vacuum leaks. Check MAP calibration using the information posted in Troubleshooting sensors and how to test in our Technical Pages and use a timing light to verify the injector spray patterns. You should proceed with a cylinder leak-down test and inspect the valve train. Are there any trouble codes stored in memory?