Today I switched the 4 degree offset key with a 2 degree offset key on camshaft keyway. The cam timing is now 4 degrees advanced, which was what I was after all along

. Patience is indeed a vitue! A little persistence doesn't hurt either. Now I can finally move forward with this engine rebuild with that issue behind me now. Here is a link to some pictures, which show the engine rebuild so far and the new piston-stop I made out of a standard brake spring tool.
http://community.webshots.com/scripts/editPhotos.fcgi?action=viewall&albumID=109150147