If Rings Don't Seat:

[madmaxx]

Cam is shot. get it out of the car, next stage is spalling. great catch!!! back around 2008 there were alot of issues with material and china demand. replace with billet not sadi cast and use comp cams not lunatii. i doubt your lifters are bad but replace anyways. they are cheap!!!! ford racing stock lifters. dont get sucked into bs. the ford stock last 200k plus miles in mustangs etc. the number one killer of lifters is valve float not loading!!!!!!

[jhv48]

another update: Took the heads to the machine shop that did them originally. The owner looked at them, took them apart and agreed to make it right. Guides are too big for the stems, wrong sealant may have been used on the rocker studs also. It seems that the guy that worked on them only lasted 6 months. Figures! As for the cam, ordered a new one from Rousch along with their lifters. This way, if one of their lifters eat their cam, we have some recourse. Didn't check out the lifters. They went into the trash!

As an aside, just how many miles should I expect to get out of a crate engine before it needs a major overhaul? Keep in mind, this is purely a street car.