im wondering if that setup is just too low of compression for a drag 3 kit

 

Well, that should put your compression @ 8.2:1 and yes, that is too low.

 

His compression will actually be 8.4:1. Sure, it's low, but it's not outrageous. A friend of mine ran 7.8:1 compression on his daily driven 81.5mm B16 with an SC61 and said it was fine. The compression has nothing to do with your lag. I went from 10.5:1 compression to 9.3:1 compression and spool up was unchanged.

 

I run 8.8:1cr on my 81mm B16a2 and have no complaints.