Did you do the compression test after running the engine for a bit ?  Did you do a wet test to see if its the rings ?  Toyota spec is 114 on the low side but normal should be 171.  If you plan to rebuild that engine then continuing to drive it could be a risk.  Pretty much gonna have to bore out .20 over.  With that low of compression it should have major blow-by with poss metal in it. Do the plugs look tan in color like its running well ?