Thanks for the input. I'll check those out.

 

update. so this is where Im at currently with the teardown inspection phase.




I am confused as to how to proceed at this point. Here is the dilemma with a quick wrap up of what I have found. Fuel pump when out on the track, coolant gauge spiked to the top just as vehicle shut off on me. Found 0 compression on all cylinders. removed cyl head and found roller popped off and that valve kissed the piston lightly, piston still ok. Removed timing cover, timing belt good and tight. I removed all the covers and inspected and found cams,crank,balancer,oil pump, everything aligned perfectly.
I found oil leaking out of the oil pump housing and more than normal in my licp and in my catch can--catch can was absolutely dry before that run. I had also recently cleaned out my licp. I drained the engine oil found the 'sparklies' in my pan,quite a bit, nothing really large though. I opened up my oil filter and that was actually pretty clean. My engine oil smells REALLY burnt and nasty. It stunk up the whole shop at work. I totally disassembled the head to inspect. Cam bearings overall looked pretty good. I drained my oil cooler, oil looked cleaner than in the pan. My coolant was clean when I drained it as well.
I removed the turbo and separated the O2 housing, just looks a little whitish as do my exh manifold runners. I removed the water pump, that works fine, spins fine, looked clean.

---- Could I have blown a turbo oil seal and that be the cause of the oil in my licp?
---- Could I have somehow had excessive crankcase pressures to the point that is why my oil pump housing is leaking and the bit of fresh oil in my can?
----When I set the engine to TDC and had everything aligned I left it like that overnight and when I came back my timing belt had developed enough slack that I was able to slide the belt off without messing with the tensioner. Now I find that my balance shaft belt has a bit a slack on it but I am not sure how much is normal. EVERYTHING was aligned correctly when I first pulled the car in though. I removed the timing belt tensioner and the rod was extended up like 3mm or so but thats it. I was able to compress it slowly in a vise and it did pop back.
---SInce my cam bearings seemed ok should I even bother to inspect the rod bearings?

Thanks guys for helping me out here.

 

It wouldn't hurt to check rod bearings, white/yellow usually means coolant unless you are running leaded fuel. If the oil smells burnt badly I'd check rod bearings and thrust as well. Good Luck!

 

make sure since u through metal shavings into the oil pan, u should replace the oil cooler and blow compressed air through the oil filter housing.... or at the very least blow through the oil cooler with compressed air, all this time and money your spending on a rebuild, id hate to see another problem for ya due to unseen metal shavings in the engine somewhere... and dont take this the wrong way, since you tanked your head, and possibly your bottom end since no compression, now would be the time for a built 2.0, or a 2.3 stroker...good luck man hope she gets back on the road soon

 

Not taking it the wrong way, I do have plans but there are so many options.. built 2.0 all the way to 2.4L. I was talking to MAP about their 2.4L stroker actually. I have already ditched the oem oil cooler. I was gonna replace it a while ago, glad I didnt. The oil filter housing is getting the plugs and thermostat removed and a thorugh cleaning through the parts washer. Ill just probably leave it in there for a few hours and then blow compressed air through it and let it sit for a bit. Everything is getting deep cleaned or replaced. My dilemma is trying to figure out what went wrong so it doesnt happen again when I put it back together, and to get my by to race a bit more until I get my engine build started.