I got everything off the 'bad head'. For those who remeber, it melted away between cylinder 1 and 2 causing zero compression. The head is going to be tossed.

But here's the really scary thing. On the cylinder head, one 'journal' (don't know the technical name, but it's the part (machined) that the cam rests on the cylinder head), is grinded away. It's the outter most one, where the cam seal goes. On the botton, the metal has been worn past and it has a hole. I thought it was oil, but it's a whopper of a hole (1/4in). The cam does not show any sign of wear, but that's just an eye ball observation.

What caused that? I think the distributor was rebuild (opened) by someone and I'm kind off thinking that they did not assemble it back the proper way?