I spoke with Ted at Engnbldr and he confirmed my suspicion of a poorly built engine. For every .001'' there is a 10 psi loss in pressure. All it would take to screw a crank up would be an untrained eye and then an idiot to mismatch bearing sizes. I though it was the crank too, but he said sometimes oil pump relief valves get stuck. This engine seemed frankenstein to me and I went out and picked up a good, used 22r out of a 2wd gardener truck and will be using the bottom end from it with my Street RV head and cheater cam. The thing is really dirty but was behind an automatic and once cleaned it should run forever so I'm exited about it.
Any wheelers in San Mateo County with a space to do this swap at? My so called friend is being weird about me working at the place where we have always built things in Pacifica.