When you pull the valve cover to get access to the valve adjusting screws, the compression release mechanism comes with the cover.. so to answer your question , no it can't be done with the compression released.. You can turn the crankshaft slowly with a socket wrench .. be sure the fuel cut-off is pulled because a diesel can fire if it gets fuel while you are hand turning it.. could break an arm .. The procedure is in the GM manual, here on site in "General Downloads" Not a hard job but if you've not done it before, it would be good to get a gearheaded friend to watch/comment/handhold.. Good Luck..