Bad news and more bad news...
Looks like metal particles in the oil have contaminated everything. I'm not 100% sure but I think it comes from a TMP replica oil cooler that came with metal chips inside. I cleaned it but really have no way of knowing if I did this well enough - I'd guess not.
We think the metal went into the system and led to rapid wear of the oil rings (which were probably already worn anyway). This proceeded to wear the rings down past the "scrapers" and begin wearing a .001 to .002" low spot on the cylinders.
This likely added more metal to the oil that proceeded to go through the system damaging all 6 intake valves, two valve guides, cam surfaces, pistons and cylinders, and most likely the main and rod bearings. I haven't had time yet to split the case to survey the damage.
So, the heads will be rebuilt, pistons replaced with 85mm JE, cylinders bored, crank and case thoroughly flushed including piston oil squirters, cam reground with rockers, new bearings and seals, oil system flush and probably a few other things while we are at it.
Should be a bit over $3k - thank God I can do my own labor!!!
Overall it's definitely a bummer but at least I can look forward to a very healthy engine when I'm done. It's deteriorated over time and I definitely felt that it went soft so I'm really looking forward to getting back to the quick revving spirited motor I remember.
