How are you testing that there is no spark? Are you sure your distributor isn't 180 degrees out where it attaches to the intake cam?

That's one problem, but your compression test results are another, bigger problem. Did you set the valve lash when you put the new head on? You could have valves set too tight and they could be letting the compressed charge out a valve that isn't completely closed. You say the head was machined, was this before or after you bought it? A machinist should have noticed if the head was toast, what work was done to it? Just milled the face, or did you have a valve job done as well?