Yeah, more than likely... the shop that was working on it said the chain most likely broke because the engine locked up at one point, they showed me scoring on the exhaust camshaft as evidence:
They later stuck a flexy camera up the oil hole to inspect #2, but couldnt see anything but blackness and sludge. The engine wasnt well oiled, it was full of gloopy black stuff. This is what the engine looked like after it came out of the car:
I cleaned it up a bit and oiled the cylinder walls so I could rotate it every once in a while. That's when I took the pictures from the first couple of posts.
Even now if you stick your finger down an oil passage you'll pull out slimy black ooze, also I never found 2 of the camshaft teeth that broke off.. so theyre probably in there too.. this thing needs to be rebuilt. I wont know exactly what I'm dealing with until I get this thing apart.. I did NOT touch the gasket mating surface.
I'd still like to get this thing rebuilt so I'll know exactly what I have and wont have to worry about it for a long, long time. The rings and bearings are already on the way, but like I said, I dont know anything about it other than using assembly lube on the bearings and using the torques specified in the manual.
I dont think I'm in over my head, because I'm a quick learner and I have experience fixing engines, and the dedication to see this through. But I've never rebuilt a bottom end before...
I found a Porsche video on youtube about the 928 S4 motor, but I'm not sure how much of it can be applied to the 944S:
YouTube - Porsche 928 Engine Training Video (1 of 3)