Is there a compass and straight edge construction of parallel lines in hyperbolic geometry?
That is given a line and a point not on the line construct one of the line parallel to the given line.
The quickest way to get you started is to refer you to my article, reference  (a pdf) on
and then to the fourth edition (2008) of Marvin Jay Greenberg's book, which is reference .
I'm guessing what you want is Bolyai's construction, given a line and a point off the line, of the two rays through the point that are asymptotic to the line, one in each direction. When I wrote the article, I relied on an earlier edition of Marvin's book, along with The Foundations of Geometry and the Non-Euclidean Plane by George E. Martin, which has a nice little section at the very end. There is also, now, Geometry: Euclid and Beyond by Robin Hartshorne.
The most complete reference I know on constructions is in Russian, by Smogorshevski, other very helpful books by Kagan and by Nestorovich. Of course, at this point I have my own versions of it all.
So you mean you want to see a compass and straight edge construction in Euclidean geometry of a circle passing through 2 given points and perpendicular to the given circle (which contains one of the points)? I believe that this construction is given in the geometry book by Robin Hartshorne, excellent book by the way.