Thanks for all the moral support guys. I spoke with Ty again today. He got the motor torn down and verified that the timing was set wrong at the machine shop. They are going to correct this, deal with the piston protrusion by either a new block or milling the pistons/recessing the valves more and they are going to cover some part of the labor for the removal/replacement. Ty is also working with Kill Devil on the heads. I feel a little better now but I still can't believe that heads in spec and a short block in spec could contact each other. I am somewhat pleased to be vindicated. All the work I performed was correct, aside from assuming new parts would be good parts.