Rob, what happened to cause you to take it to the dealer? Did they know to disable the compression release before taking the compression readings? And as for the leak down test, where is the air leaking out of?
These are very durable engines and not given to failure. Might be time to do some investigation yourself.
Exactly what i was going to suggest!.
Update,afer reading all posts from original poster of this thread before spending big bucks for another motor i'd to a couple decarbonings using ring free or curts Seafoam proceedure to decarbon motor.
If your not up to handling this kind of work take it to another shop that you can fid has a good rep.
go thru carb
ensuring needle & seat are ok and chk float lvl.
Now to stop the carb from puking fuel when hot like many R*'s do you can insualte the fuel system like i did to stop carb puke if you want to retain stock elec f-pump.
If you go pumpless that opens up motor for enough aditional cooling to stop carb puke in most cases
esp if you dump lrg stock airbox on other side of motor & install a BAK
so the motor now gets more additional cooling on both sides vs stock where motors closed in with lrg stock airbox on one side & the elec fuel pump & fuel filter with bracket & cover blocking cool air on the other side .
Maybe you could chk valve clearance while your at it but it's not a must.
Then after your done checking carb's needle & seat & float lvl adj along with a good decarboning of the motor i'd change the plugs,the fuel filter ,& the oil & oil filter too,then see how it does after that.
I'd be willing to bet after doing the above it will run a lot better .