I'll check the voltage while it's running tonight. I haven't done that yet.. I did connect the coil directly to the battery to take the ignition key switch out of play though.  It did the same thing having the ignition connected directly to the battery. 

As far as TDC I know we are right on the money there.  I did the trick you mentioned when we put the new timing change and gears on.   

New UPDATE:

I had a mechanic buddy come by and take a look at my problem.  We took the valve covers off and checked the rockers and after rotating the harmonic balancer nut, we found one rocker was crazy loose.  I didn't ever hear a valve tap which is odd.  I ended up taking off the tunnel ram intake and sure enough, one of the exhause lifters was concaved.  The cam lobe is also flat which explains a lot.

I have no clue what cam is in it so I guess I'll pull it out and get a new one and new lifters.  I'm going to start a new thread to hopefully get some feedback on what to get.

If you can swing it, go roller cam...Unfortunately there will be powdered metal literally everywhere in the motor so it should come all the way down IMHO....

Sorry to hear this, sucks for sure...

GT..

I was afraid I would hear this...     I really want to get back on the water and finish the season up since it's winding down hear on the east coast.  Could I do some major damage if i through a new cam and lifter set in?

Catastrphically major I am afraid....Anyone else?

GT

Yeah, Motor comes out, tear it down, clean it thoroughly. As far as a machine shop, no if you have or have access to the correct measuring instruments for bore, main bore, cam bore, rod size and crank diameters.

Personally, I would take all of it for a hot tank and inspection. Much cheaper than buying all the tools. I have most of them, but still would ,only as a double check on myself. It doesn't cost that much.

Now, on the flip side, I have seen (DO NOT RECOMMEND) people pull the pan, pump, clean them, put it back together with no firther rip down (You're gonna have a CAM AND LIFTER INSTALL AT LEAST) Then put it together, fire it, for a few seconds, change the oils and filter, do that like 3 or 4 times, call it good and run it. And some have run for years.

Depends on whether you have the luck of the Irish or not, I guess!  never trusted in that.

Ray