I hadn't given it a hard workout up til yesterday, but it seemed ok with the .325 chain aside from the issues of the clapped out bar. Compression feels about right judging by hand; somewhere between my 362(60cc) and PoulanPro(42cc). The saw holds itself up by the rope. Sounds right running, and starts easily. Not sure what it could be aside from losing compression when it heats up. Fuel is the same I use in all my gear. Whatever synthetic oil(currently Stihl ultra), midgrade corn free, and mixed somewhere between 40:1 and 50:1.
I could try some cheap stuff like fuel/oil filters to see if that helps. I could also try taking to the shop, but I'm not interested in putting hundreds in it. That's just pissing money away imo. At half the cost of a new saw, you still have a lot of old shit that's yet to break, and you have a saw that's inferior by just about every measure to something new, even when running at 100%. He might cut me a deal on a 261 if I'm ready to buy right then, but I'm not sure I want to go Stihl with the office saw. It's a lot of money for a secondary saw. That's why I got the used one. Figured if it gave me a couple good years, I'd be good to go. Unfortunately, it was a good bit less than that.
edit:
Oh, and "scrapping it" is a figure of speech. I'm a packrat, and hold on to everything. It would go into storage until something cool happened(maybe come into a smashed 026 cheap or free), or I died. If I actually throw something out, it's useless to just about everybody :^D