Big Jim
Hard-core CEG'er
One scenario could be that you had a leaking injector, fouled a plug, washed out a cylinder damaging the cylinder wall and/or rings. It also could have been a leaking valve guide, fouling a plug, unburned fuel washing out the cylinder. It could also have been an ignition problem allow unburned fuel to wash out the cylinder.
At this point, some effort can be spent trying to see if that cylinder might restore itself. It isn't likely, but possible. Make sure the injector is working properly, the ignition is healthy, with a fresh plug (or at least a known good plug swapped from another cylinder), add a tablespoon or two of oil to the offending cylinder (oil type or weight doesn't matter, I usually use ATF) start it up and see what happens. If there is no improvement, it is time to pull the head for inspection, or substitute a known good engine (3.0 time?).
At this point, some effort can be spent trying to see if that cylinder might restore itself. It isn't likely, but possible. Make sure the injector is working properly, the ignition is healthy, with a fresh plug (or at least a known good plug swapped from another cylinder), add a tablespoon or two of oil to the offending cylinder (oil type or weight doesn't matter, I usually use ATF) start it up and see what happens. If there is no improvement, it is time to pull the head for inspection, or substitute a known good engine (3.0 time?).