When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
The catalytic converter will get hot, and will glow red, and will create a fire hazard, when it gets stopped up, and yes, it will make the engine run badly and probably not at all. The exhaust has to go somewhere. Excessive fuel getting out of the cylinder and down the exhaust pipe (running rich) will damage the converters. You can put all the engines you want in there, but if the exhaust is stopped up, your problem will remain....
By chance do you have true dual exhaust and dual converters? If so, does one get red hot and not the other? I just find it odd that one side has no compression and I think Redwood may have hit on something. Check that side for exhaust blockage. Just a guess.
I agree that loss of compression across multiple cylinders is a really bad thing, but it's unusual to lose it on one bank like that. Somebody has been messin' where they shouldn't. I think pulling the head would reveal a lot, but I'd redo the compression check myself before I took their word on it. If the timing was off far enough to cause interference, it wouldn't run a few minutes and then cut off. It would've already caused other noticeable damage. I'd be willing to bet that compression is lower than spec across the board due to high mileage, and they only checked the bank where the problem is.
Recheck the compression on all 8 cylinders. If it's off for that one bank, then pull the head and see what the problem is. And you need to replace the converter that's glowing red when it gets hot....