No compression in #1 cyclinder

I have noticed my 1995 Toyota Tercel (160,000 mi) missing so I took it to the shop after I replace all the plugs and wires. My check engine light was on, and the mechanic said I have no compression in my #1 cylinder. For full repair I was looking at around $500.00. I only paid $800 for the car so I do not want to put that much in at once. Is there an easy fix to see if I have a small problem resulting in the lack of compression (what problems cause no compression)? (Anything I can test, or other problems that would lead to no compression in a cylinder.) If not how much of a project is it to do myself. Im not a licensed mechanic but pretty mechanically inclined. Any help or info is much appriciated.