I would like to add that you don't want to run your engine at much more than idle while on the hose. The hose can't supply enough water even on full bore to keep the engine supplied with water.
You saying high RPM's on 'fake-a-lake'(which I assume are muffs with a hose) makes me cringe for your water impeller.
Good luck with getting the engine running! With those compression numbers, it's likely a spark or fuel problem. I would guess spark problem if it never has power in the water. Even if the tank was not venting, you should be able to get on plane right away after priming the bulb. If pumping the bulb up while trying to plane out doesn't help, it's probably an ignition issue.