The compression hypothesis doesn't make sense to me. I don't recall ever working on a worn engine that had less compression when it got hot. It's usually the other way around - low when cold, and higher when warm. That - except one situation that comes to mind. An overhead-valve engine with the valve-lash adjusted too tight. They will get even tighter when hot - and in that case - compression will go down after warm-up.
I'm not up to speed on all the different propane systems - but there are several. I've known of many that developed "hot start" problems - and most of the problems were caused by the fuel-controls.
I just recently witnessed a guy getting screwed on a "low compression" diagnosis on his Red Seal powered forklift. I was asked to go down and help out. It is propane powered. It started getting real hard to start. The guy took it to an auto-repair shop. They told him the engine was worn out - and they then bought a new Red Seal "long block" from Caterpillar. Well, they installed the new engine, and swapped over all the external parts - propane suff, carb, etc. And guess what - no start. When they got all done, it was one of the LP controls.
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Today's Featured Article - Gatherin of the Orange - by Rick Nikolich. In July of 1998 I was talking to fellow Allis Chalmers collector Mike Schilling about the annual "Gathering of The Orange" AC show coming up in August of 1999. He got this wild idea that we should get a convoy of AC tractors and drive them from Charlotte, Michigan 105 miles to LaGrange, Indiana.
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