Chip . . . as a sign of my insanity - I kinda understand about everything JH sez except the part about spitting from the tower . . . unless the tower was in Italy or something like that.

Sounds like the cam gear relief might not be ground sufficiently - could be straight as can be, yet if the roots of the gear teeth are not ground correctly, their is not enough room for the dist. gear teeth to seat and run on the gear crown - instead they run on the pointy ends of the gear teeth face and you will get a big thrust load, lots of little chips (hey . . . your name is Chiphead . . . this might just be normal for you!) ha ha ha . . . How much lash is their in the gear engagement when it is all fitted up. Should be a little to indicage gear clearance. Rotate motor in half rev increments and check dist gear lash at each point. Kinda like setting up a pinion/ring gear without the white grease stuff. . . .well, I am supposed to get some work done today. Big secret project involving microwaves, composites and round automotive products in mass quantities. :o