Your compression readings are about average... and if you actually checked the spark with a 7/16" air gap, that's fine also. Spark plugs should be gaped at either .030 (long life) or .040 (strongest spark). What make and type spark plugs are you using?.... Recommended is Champion QL77JC4 plugs.
While running at a rpm whereas it will stay running, do a drop test... removing the spark plug wire, one at a time and comparing the drop in rpms/performance to see if all 3 cylinders are identical... or not!
On a flushette, that engine (20" shaft) should idle at 1000 rpm.
When one has compression and ignition/spark as you state, The problem is usually due to a fouled carburetor which requires removing, cleaning, and rebuilding as needed with a complete kit available at this site. The drop test (above) should reveal which carburetor if you decide to just rework one and not all.
The idle is set as follows: Back the idle stop screw away from its stop... adjust the idle via the threaded trunion on the throttle cable at its clamped in location... then screw the idle stop screw in just so it touches its stop so as not to lower due to engine vibration. Usually the idle will vary (increase) due to play in the control box as the throttle is increased and returned to its idle setting, and resetting the idle becomes a 2 or 3 time process via the threaded trunion. Just stick with it.
Let us know what you find.