Well everyone...went from bad to worse. I used my friend's scope to look into my blower and I see scraping on the rotors and walls of the blower so that may be junk too. Looks like it was all caused by a broken follower on an intake valve that much have pushed the valve too far down and caused major piston to valve contact.
I will start taking stuff apart over the long weekend.
Looks like there may be another big block build on here. I'm thinking mid 500 cube range, transfer my fuel injection system and ECU over and run it on E85. Lito believes he knows how we can do it so it may be pretty trick. Will be quite a while until I can do it though since that won't be cheap either.
Now to figure out how the hell to bolt my 4R70W to it!