Well from the looks of things it appears we are in the same boat as far as symptoms and signs. Chris_oz. I will be starting a new thread soon so as not to hijack RhapidFyre's thread. But I'd like to know if you ever found out what the root cause of it all was.
Today we ripped the heads off and everything else attached to the motor besides the transmission and the mounts. It might be a week or two before the motor can go to the machine shop. But there is something definitely wrong with the lower rotating assembly. There is lag and movement in the number 8 piston assembly. We will find out what's what and go from there. As my buddy says, "It's called Hotrodding."