v8volvo--Thank you for the sound advice on figuring out what lead to the failure and getting her up and running before considering a turbo mod.
After letting the cylinders soak with PB Blaster for a few days I decided to see if I could turn the motor. First thing I noticed was that the crank nut was practically hand-tight. Well, I can say for sure it's probably torqued beyond spec by now as the motor would not budge (stuck rings I figured). I'm sure I came close to snapping something, so I stopped and added more Blaster and let it sit over night. Still wouldn't budge this morning, so i broke out a dead blow hammer and a 5 pound sledge, striking the dead blow with the sledge on the pistons-voila. Got it turned to TDC, got my measurements and ordered the 2-notch head gasket, M12 head bolts and other gaskets.
Checking out the old head and scavenging the injectors etc... I noticed that the larger valve on #2 cylinder was stuck open-bent I guess. So between that, the intact belt and the loose nut (not the one behind the wheel lol) on the crank, I suppose the failure story is told.
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