Thanks guys for your response, upon further research into this I've found out that this problem is fairly common in engines that have not been looked after.
I kinda new that when I bought the parts car because the owner said that the engine had been overheated which is sure death, I got the parts car so cheep I'm not worried about the engine..... on to plan B.
The problem is that the cam bearing journals, the cam support cap and the head surface where the cam journal seats are all scoured, very rough to touch, they should be smooth much like a crank journal.
I'ts my understanding that when this happens it is not repairable in other words the heads are junk. I'm sure that I could put the heads back on and it would run fine, I would rather fix it right..... only the best for my SHO Wagon lol. Sorry no pics, no digi cam..... yet. I might need some help with that one.