Pay attention to 3B, the rings are definitely not broken in, I wouldn't expect to get full compression yet, and its unlikely the oil was an issue, if you got wet plugs its probably just the oil used during assembly.
And hydraulic lifters do still need to be adjusted when set up is new.
Good luck.

1946 Chevy 1/2-Ton
In the Stovebolt Gallery
More pix on Photobucket

Sometimes I forget where I left myself....