Oh yeah you definitely need a rebuild! What is it engaging at? I wouldn't bother with a different spring in a 340 if anything just replace it with a stock oem spring in the primary and secondary and replace the secondary buttons and a new belt. Make sure the belt deflection is correct and that they are square. I'm betting that and the rebuild would really make a difference in it. Really can't do much with those P-90s for clutching. I would rebuild it and go from there. I would also find out why it lost the compression, bad carburetor boots, seals, something had to cause it.