Danny, if I were in your shoes I'd be testing for function as I dug into the engine piece by piece.
I think I'd put the thrust plate back on and loosen all the rockers.
I'd try turning both the cam and crank by hand (with a wrench, as the rings are going to be too much friction)
I'd push and pull on them looking for end play.
Have at the oil pump, I mean it's definitely suspect, but look for clues at every step.
Jim,
Lil'Red is a '87 F250 HD, 4.10's, 1356 4x4, Zf-5, 3G, PMGR, Saginaw PS, desmogged with a Holley 80508 and Performer intake.
Too much other stuff to mention.