Finally got around to putting the rockers back on (one side). Started rolling it over and it bound again, pulled the cover, and the big idler gear is hung solid. I removed the rockers and it rolled over easily. My conclusion is that the spring tension is pushing the cam down causing it to bind. The gear is coming off and the chain is going on, but I am curious if there is another problem that needs to be addressed before moving forward. I have thought about putting a dial indicator on the bottom of the cam and checking it before and after installing the rocker arms. I'm not even sure what an acceptable amount of play would be.
That don’t sound right, unless your cam bearings are wiped out.
Was it a running motor when you got it ? All the same parts being used ?
Can you see if you have clearance between the idler gears and the block ?
