Well in looking at all my parts and trying to figure some things out, I'm starting to think I may need to rebuild the shortblock 
I pulled the spark plugs and they seemed fine untill I pulled the #1 plug and it was drenched in oil and totally blackened. I'm not even sure if this one was firing properly if at all
I DO know that the valve covers were sealing just fine, no leaks whatsoever.
Here is the bad plug . . .
View attachment 470116
Then I basicly dipped a magnet in the oil and got ferrous dust (grey stuff) and metal chunks gallore . . . Rings? Bearings? Both??
View attachment 470118
Now I DO have a problem with the distributor gear wearing out pretty quick, but it's definitely not coming apart is chunks like you see on my finger there. I've been finding metal shavings in the little puddles of oil left in the valley and on the heads too. There aren't all tiny either, they are definitely large enough to cause some serious damage.
SO now some symptoms I had before taking the motor back apart . . .
Do all fingers point to fubar'd rings on #1, or maybe bad bearings?
If so, I'm cancelling the car insurance and saving up for a 331 or 347 kit or whatever I can afford I guess.

I pulled the spark plugs and they seemed fine untill I pulled the #1 plug and it was drenched in oil and totally blackened. I'm not even sure if this one was firing properly if at all
I DO know that the valve covers were sealing just fine, no leaks whatsoever.Here is the bad plug . . .
View attachment 470116
Then I basicly dipped a magnet in the oil and got ferrous dust (grey stuff) and metal chunks gallore . . . Rings? Bearings? Both??

View attachment 470118
Now I DO have a problem with the distributor gear wearing out pretty quick, but it's definitely not coming apart is chunks like you see on my finger there. I've been finding metal shavings in the little puddles of oil left in the valley and on the heads too. There aren't all tiny either, they are definitely large enough to cause some serious damage.
SO now some symptoms I had before taking the motor back apart . . .
- Ticking sound (got worse the more I drove it)
- Lost 1/2 quart of oil in 100 miles (but no smoke or leaks)
- Had a mean squeek/squeal coming from the motor that went away
- Low on power big time
- Motor had a tendancy to sputter and putt once I shut it off
- Coolant is looking dark, but it's hard to tell if it has oil in it
- Oil isn't brown anymore
Do all fingers point to fubar'd rings on #1, or maybe bad bearings?
If so, I'm cancelling the car insurance and saving up for a 331 or 347 kit or whatever I can afford I guess.

I already got the gt-40 (non-P) heads from an explorer though.