Thanks for all your suggustions. I'm pulling the engine tommorrow and will post the problems Monday. I now remember when I disassembled the 261 that was sitting on a pile of stovebolts in an old Flagstaff junkyard for who knows how many years, that the #4 cam bearing was lunched.
Maybe it spun in the block and wouldn't hold the new cam bearing in place. These bearings were installed by the engine machinest and before I installed the cam I verified the oil galley holes were showing through the bearing openings.
If this is the case (A spun cam bearing) I assume the block is toast.
