All good input and questions. Stock cam grind from lamaar Waden. Degreed in for sure. TDC was checked and marked at the balancer to assure "0" was right on. As you all know it has no vac advance. I played with timing all the way to 32 degrees adv at idle. This made it run a little longer before it overheats. It is the original waterpump,cast iron impeller that works without a flaw. I tried to slow the flow down with a smaller pulley. This had no effect. Original pulley is back on.
Yes I leaked it down (2 percent) so it's nice and tight. I even "smoke" tested it when it was hot (no leaks). Thought I had sky high compression, crank test is only 150psi. This is more than acceptable due to the cam profile. Not sure about that 348 head question but I do know for sure the heads match the block.
Is it possible my machinist missed something? Being that I no longer have HC's I am to believe there is no crack. But before I tear this back down again I am asking as many questions as possible. I assure you all common sense is being used. So far no one has said anything about my high compression (12+ to 1) and .060 over. Could this be my original problem? It is the only thing in this re-assembly that has not been changed. Thank you all for chimming in. I know we all can fix this together and many other 409 guys with similar issues. If someone would like to talk by phone, I am available. Dom