That is a MUCH better result, but...
Why *beep* *beep* he wait until your engine is absolutely cold ?
Compression test should be done WHEN ENGINE IS AT OPERATING TEMPERATURE (HOT!)
What is wrong with all these "half-water" mechanic... *walau*
He did everything ALMOST right, but:
1. engine must be at operating temperature
2. DME fuse must be removed too (better)
the variant now is 5psi.. which is good.
And "assume" the psi will be higher when engine is hot & engine oil is still "up there", I would say your engine is fine.
Time's to go out and have some fun. Dont' forget the hit the rev limiter.
p/s: You need a E36 service manual, and slap the mechanic with it
There is a link to E36 service manual PDF somewhere... just posted recently