Well my engine is F*cked

 Well it would seem I'm in need of new block. Consensus now seems to be that the wrong O-Ring was used on the pump/pickup assembly which allow air in from day one and eventually sucked in the O-Ring. That starved the cam bearings etc. Probably because I had a high pressure pump it lasted as long as it did. Here's what Ellis said:

"I do not have good news.  The cam looks like it has been starved for oil.  Upon further investigation we found at least one spun cam bearing maybe two.  I have included a few pictures of the damage we found on number four cam bearing which from what I can tell is the low oil problem.  The other bearings are hurt also.  It looks like number five may have spun also and that would ruin the block for sure.

I talked to my Machinist and the oil pick-up problem is the most likely cause for this to happen.  I actually found a post on the web today that lead me to pull the cam first and check this.  Glad I did as we found what we were looking for."

In the first Picture you can see the cam bearing is spun up against the lifter and the lifter is chewing up the bearing

In the second you can see how the cam bearing has spun far enough back to uncover the main oil feed dumping all you oil pressure