Pulled the motor and tranny out and took the heads off and I not only have a flat lobe on the cam it ate the lifter too. Exaust lobe on the #2 cylinder and it must of went flat from first start up. The lifter actually has pieces missing off of the bottom where it mates with the cam. None of the cylinders look scored or marked so I might try to just do a re-ring and shave the heads for more compression.