The same compression reading across all 4 cylinders doesn't really suggest valve damage to me, but they are low. Should be around 190psi on a new or very healthy used engine. Consistency across all 4 is the most important thing though.
You'd expect at least 1 cylinder to be significantly down on the others if there was valve damage. Even bending an intake valve a couple of degrees off centre is enough to drop huge amounts of compression.
I still have no idea how that cam adjuster works.... witchcraft
It's pretty easy to understand how it works when you've got it all in bits tbh. This is no 'VTEC yo' thing though. All it does is adjust the valve open and close times, not the lift and lobe duration like the VTEC does. VTEC is done for power. This system is done for efficiency.
All you need to picture in your mind is when oil is fed into a chamber inside the adjuster, it twists relative to the (fixed) exhaust cam and because the inlet and exhaust sprockets are connected with a chain, if the adjuster on the exhaust cam moves 10 degrees, the chain therefore pulls the intake cam round 10 degrees. Feed oil into the other chamber and the adjuster moves the opposite way. The tensioner in the middle keeps the chain taught during the retard and advance movements.
Maybe this cut-away drawing might explain better!