For those of you following this thread I found the reason for the messed up timing issue. The dog on the cam pulley was sheared off, cocking the pulley about 1.5 mm's off which translated into the distributor rotor pointing the wrong way at tdc on the #1 cylinder.. In removing the cam pulley the end of the cam shaft came off with it. I have to say I'm impressed that the timing belt could exert or resist enough torque to do that kind of damage. I'm replacing the head with the one off the 'new' motor. Hopefully that's all the damage I have to deal with. Thanks for listening.