You have two fairly easy choices: Do a set of compression tests, or use a vacuum gauge.
If you opt to do compression tests, the only way to accurately determine if the rings are bad is to do it twice, dry the first time, and wet the second time. If the numbers go up significantly after the wet test, the rings are shot.
With a vacuum gauge, if the reading at idle is lower than normal, but the gauge needle fluctuates three inches on both sides of normal, your valve guides are excessively worn. If, when you quickly close the throttle after running at 2000 rpm for ten seconds or more, the gauge needle DOES NOT jump two or more inches above what it is at idle, your piston rings are shot.
Take care,
~Chris
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