Such a low reading in one cylinder compared to #2 would lead me to suspect something other than rings. Did you check the compression in 3 and 4 also? Did the problem occur soon after doing any maintenance on the car?
When you removed the old head, were all the head nuts properly torqued, or were any loose? Likewise, when bolting up the new used head did you follow the torque sequences (two of them) up to the proper torque?
Where did you source the replacement head - was there any check made to ensure it didn't have issues either?
Possible problems leading to a low reading in the one cylinder include problems with the valve seat, the valve not closing completely, bad valve adjustment, cracked head, broken rings.
Worn rings or cylinders would be more likely consistent in all cylinders, so checking them all is essential.
I'm not sure that misaligned rings would result in such a dramatic drop.
First thing to check is your valve adjustment. I must be done when the engine is cold - let it sit overnight where you will do the adjustment.
Intake and exhaust should be adjusted to .006"
Here are a couple articles with step by step instructions, just in case:
http://www.vwtrendsweb.com/tech/0106vwt … index.html
http://www.glenn-ring.com/tech/valve_adjustment.htm
Some engine builders inadvertantly put the distributor drive shaft in backwards, which leads to an engine being "180" out. What this means is that when you think you have the engine at TDC, it really isn't...so adjusting valves here can lead to some not closing at the right time. To confirm to yourself that the cam is in the right position for the valves you're adjusting, put your fingers on the rockers of that cylinder and turn the engine a quarter turn in each direction. If the rockers don't move, you're in the right position.
While checking the adjustment, also check the head nuts with your fingers to make sure none have loosened off.
Let us know what you discover!
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