HELP! Honda Civic D15B Questions

Hi there. I'm actually posting this on behalf of my girlfriend
who has just purchased a nice little 88 Civic Auto Hatch (only done
160,000kms) to find that it just might be running a little low on compression.

I say 'might be' because I've got no clue about cars, but the
RACV bloke who came and helped her start it (after she'd been
having a few starting problems with it) said that the reason these
cars play up (if not an electrical reason) is due to low compression
in the engine - something to do with oil rings or piston rings - he apparently
saw a puff of blue smoke and it then went away.

He suggested using thicker oil in the mean time (apparently, this helps
block any cracks in seals) while she saves for a new engine/new car. A real bummer considering she bought it only a few months ago.

Now, I'm just wondering what kind of options she has in fixing the car.

Is it worth getting a reco D15B for it (Its a Dual Carby 16v 1.5 at the moment) - if so, how much is she looking at?

Or are there any better/cheaper/more reliable/easier to find alternatives
in replacing the engine.

Also, if any one has had similar problems like this one previously and has had
to swap their engine or had a different kind of solution please reply and let
me know.

ANYTHING will be helpful.

Cheers.

P.S. I know that she should have got a compression test performed before
she purchased the car - but she wanted it then and there. The problem has only manifested a few days after the dealers statutory warranty (3 month) expired so we've got buckleys chance of getting them to help.

I would start with a compression test, a bit of blue smoke could be from anything. I wouldnt start looking at new engines untill you find out what the problem is. If it is low on compression just find another 1.5, they are usually thrown in the bin when a conversion is done lol.