Haul the whole thing down to Grays Automotive in McMinnville and let him set it up for you. Looks to me like you have some good parts but it wasn't set up properly. Now you probably need to have the crank ground and buy new bearings. Might need to hone the cylinders too. Looks like the clearances were too tight everywhere in that engine?

Have Grays assemble the engine for you and then do a dyno test before you put it back in the car. That way you'll know it is good and ready to run.