[iJDM]

A good compression test isn't enough to verify the car is timed correctly. Timing could easily be off, while still having good compression. You need both of these things (obviously) for the engine to run properly.

Example: you could have lost compression in a cylinder due to a failed internal, yet the timing could be correct and unaffected. Likewise the timing could be off (jumped a tooth) but you could test compression and it still come back acceptable within specs

Engine compression and engine timing are not necessarily in direct relation to each other.

From looking at the picture I think that you should redo the timing. While you already have the engine semi-disassembled it would probably be a good idea to triple check it. Engine timing isn't something that you want to guess with. Do that and you could have some real problems once you put it back together and try to run it. Bent valves, I've seen that all too many times.

The solid compression test is good news. The code 21 you are talking about (primary ignition circuit) can be thrown by timing being off. I can't tell you over the Internet that is 100% your problem but after reading this thread and viewing the picture that's the direction I'd point you in....

Good luck to you sir