440 lo comp rings worn?

A compression test and leakdown test will tell you nothing about oil ring condition. Timing dancing around on a big block can be caused by the gear walking(fixed with a lock collar on the dist. shaft) and not the timing chain. I agree I would not spend money on heads until you know the condition of the short block. My thoughts are maybe the oil rings are stuck on the pistons causing the oil at the breathers or the PCV system is inop.