TOC.....It was late last night and I was tired.....I just saw marks on the cam and the rod and put them together (although I did say I wasn't sure if they correlated or not). I looked it over today and the camshaft is just fine....the marks are superfluous, but the #1 rod was making contact with something. the damage was on top so I did not see anything when I removed the cap.....I only saw it by peering into the hole that the cam slides into. So I reinstalled the cam (without the lifters) and spun it while looking up at the crank when it hit me.....the only thing it can be is the oil pump. The pump is external and bolts to the side of the block and runs off a gear on the cam near #1 cylinder.
The pump itself is fairly new (~3 years old) so I knew it wasn't bad, which meant I erased it from the list of possibilities (d'oh!). While the pump itelf was still good, the gasket wasn't. I had to remove the pump when I had the engine out to replace the O-ring on the filter relocation kit. The gasket had broken so I tried to buy a new one. Nobody carries it, even Nissan, unless you buy a new pump. Since I didn't need a pump I just made one from some gasket material I had that looked to be similar to the old gasket. Evidently it was thinner than the old gasket which put the end of the oil pumps shaft in contact (barely) with the rod.
How stupid is that?! I'll take some pictures of the oil pump soon....I already have the camshaft & lifters re-installed so I can't take any pics of the rod.
Now it's just a matter of re-installing things.....I should have it running again sometime tomorrow.
BTW......nomad, I found a place online that listed a stock camshaft, but I haven't called to find out if they actually carry it or not. Probably not, but I will find out (even though I am not replacing the cam at this time) and will let you know what I find out.