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what's going on here?

I picked up a '71 4V "virgin"engine this weekend. Complete from oil pan to air cleaner. Its got a D0AE block and D1AE heads. Everything looks in order for an engine that has only recently had the intake and 1 head taken off. The bores and pistons look good, at least no gouges or cracks. You can even see the cross hatch marks on the big ends of the rods. I dont see any marks on the crankshaft itself. All bearings have ford part numbers with no oversize stampings. All good so far. When I started disassembly it smelled more and more like "burnt" oil. Upon closer inspection of the bearings, cam spocket and cam I think know the reason for the smell. 2 or 3 of the main bearings have 1 or 2 gouges on the bottom halves and the rod bearings are showing a lot of copper especially #4 but none look good. The cam sprocket was tying to loose 7 or 8 teeth and the chain was almost falling off it was so loose. The cam lobes are very worn and most of the lifters are concave to the eye.
Is there a smoking gun or should I carry on with getting the block and heads checked for cracks and sonic check the cylinders?
I'll see if i can upload some pics but you get the gist.
Never an oil change or just par for the course?
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