Thanks Truck. All the bearings rotate freely. With no damage. The engine only has a couple hours run time and has been run rich enough for me to have to blow it out at full throttle before a take off roll. After 5 gallons I thought it was time to optimize the mixture and move away from the break in fuel. At this point my plan is to bolt it back together and run it. Bad news is I have to hand cut gaskets first.
Ace, the connecting rods have sone lateral play. The picture that you posted with the arrows do illustrate this. The play is about .030. The engine was designed this way. I was considering adding some shims to the upper end to limit this but I would think if it was an issue I would have had a failure way before now. I'm thinking the best route to do at this point is put it back together and go back to 40:1.