The clutch question I'll leave to Deejay to explain. On the engine question it appears that you have almost no compression, probably due to one of three causes: extreme wear to the piston rings; a severe leak of the cylinder head gasket; or a valve not closing fully, perhaps due to foreign matter lodged under its sealing surface. There are other possibilities, but they are less likely (a broken piston crown, or a camshaft timing error).
