Zantin,
I'm assuming nothing of your knowledge or what you've tried since you mentioned little. (After tearing the engine back down to the cam, I recently found that my new SFI dampner was mismarked...so assume nothing.)
Did you check the leakdown or just pumping compression? Listen for where the air is leaking from. Carb/intake valve, Header/exh valve, Valve cover/rings.
Did you check for cracks? Head or block
Did you loosen the rockers and recheck?
Did you check "roundness" of the bores?
Had you noticed anything before the overheating, and what was the cause of overheating?
Any bubbles in your coolant, when the engine is running with the cap open (always cool engine first)?
EASY CHECK for water in oil: let oil into a milk jug and let set for a day, look for separation. I've spun a bearing like this before on a newish engine. If external and your just looking into the bay, are you sure that its not from the intake...hoping optimism.
[This message has been edited by Bleeds Blue (edited 12-17-2003).]