It has been a long day. Ran all over and burned up $100.00 in gas. And talked to a 100 poeple besides everyone up here who is offering good advice. Took the head back to Chapman's to get it repaired, and had them install check springs on the other head so I could mock up the left bank and #3 cylinder again.
Yes I used the dial indicator to find TDC on #1 and it is correct. I also checked #3 TDC for the hell of it, and it is correct. (like the crank is going to be wrong.) Took the other pistons over to H. Doubaugh's shop to have the valve pockets check and realigned to the valve angle if necessary. Tomorrow I will check the clearance of #3 exhaust valve at 10° BTDC on the exhaust/intake stroke. that is the closed the piston will ever be to the piston now that I have the check springs on the valves. Will post tomorrow with results and any further developments.
Thanks for all the help todate,
gyrogearloose