Well, you're partway there- - - - -have you checked the bottom of the lifters for wear like I suggested? I see at least one cam lobe with wear at the edges, and another one with what appears to be rust pits. Depending on your time and budget considerations, it would be to your advantage to go ahead and do a full rebuild, but that's going to involve at least a few weeks and around a thousand dollars worth of parts or more. If you get into cylinder boring, crankshaft grinding and cam and lifter replacement, the parts cost will at least double, and some fairly pricey machine shop work will also be needed. By all means, inspect the rod and main bearings for wear and oil clearance. Once I get as far into an engine as you are by now, I almost always go for the full rebuild, but I'm able to do at least 75% of my own machine work. About the only thing I have to farm out is crankshaft regrinding.
Jerry
