Pulled the Mess that was my Timing Chain....

Looking more at the cam sprocket groove around the cam, and with Pista's comment, I realize that I can't say if that is normal or not. The cam sprocket normally rides on the front of the block as the thrust surface but can't say if the groove is normally there or that deep.

I would suggest that you put the pix on the 'Engine' subforum of www.slantsix.org and see what the folks there say. I am becoming a bit concrned at that part. If it is really worn in that deep then the lifter alignment on the cam lobes will be way off. This may have happened prior to the previous cam sprocket change out.

BTW, Doug Dutra sells reground /6 lifter for less than new ones. He can be found on www.slantsix.org as 'Doctor Dodge'.