Hey Joe, welcome to the forum.
To start off, these are pretty easy to work on once you learn your way around them. Please don't take offense at any of my questions, but I don't know your skill levels so I have to ask. If it was running before the head gasket was replaced, then he did something wrong. You mentioned that the mechanical timing is correct. Tell me how you checked the cam to crankshaft timing.
You sound like you know your way around an engine, so I'm sure you also know that an engine needs three things to run; air/fuel mixture, spark, and compression. You said that it has good fuel pressure, but did you check that the injectors are working? Did your friend plug everything back in after the hg job?
As far as compression goes, 3rd gen engines had about 175 - 180 psi on each cylinder when new if I remember correctly. I had 125 or so on my old engine, and it still ran fine. It just lacked a little power. An internal combustion engine will fire with as little as 30 psi (although not well), so I don't think compression is your problem. But what you are reading is pretty low.
What I would do is:
1. Make damn sure every connector and vacuum line is plugged in. Also make sure all of the grounds are connected on the engine block. Especially the one on the coolant neck.
2. Double check the cam to crank timing. If that is off even one tooth it will throw off your compression numbers.
3. If everything above checks out, make sure the injectors are firing.
One other question, how good is your friend with cars? How sure are you that he did the hg right? Ask him what his torque procedure was and what the final torque number was.