Can anyone figure this out

I'm still not sure why this engine will only run with the original points distributor but it was kind of a good thing it was acting up as it caused me to investigate further. I had some responses as to a vacuum leak so i checked for leaks from on top of the intake and found nothing so I dug further. I pulled the engine to find the previous owner who had just put the motor in installed it on 1 broken motor mount and the other mount had the nut on about 1/2 turn and the nut was cross threaded. If the motor would have made any power it would have come through the hood. The intake was leaking from underneath and sucking oil into the intake ports. The cam was 4 degrees retarded. I figured i had better pull the pan and when i did it was a real mess. There was metal shavings an inch deep around the drain plug. I pulled the main caps and looked at the bearings and I have never seen anything like it. They are smashed and smeered and flaking and peeling and scored. I don't know if the wrong bearings were installed or what happened. I didn't even bother to put a micrometer on the crank as it is junk. The motor was already .060 over so I pulled the new pistons and the cam out, marked the lifters as to which lobe they were on and i'm going to scrap the rest. The heads are J heads with bigger valves but i don't trust them without being checked out. I was able to find a fresh 360 locally yesterday. I tore it down as I'm not very trusting any more and everything looks good with this new engine although it is lower compression with a milder cam. I'm anxious to see if this engine runs with a different distributor. I hope to have it in this coming weekend.