Starter damage and a host of other problems. HELP PLEASE!!

[Okayplayer]

Okay, I just dropped the engine back into 1968 and I am having some serious issues. First the engine sounds like it's running pretty rough. The reason I pulled it was I had a spun bearing on the #4 rod bearing. I changed out all rod and main bearings and the crank. I replaced all the seals on the front case and tensioner etc. The engine is running rough and the timing belt seems pretty loose. I reckon that the timing is off a bit and that's the reason for the rough running.
I also changed the clutch slave cylinder. I bled the crap out of it but the pedal feels super sloppy and is not coming all the way back up so I will bleed it again.
Now a real concern in the midst of all this is starting the car. It chugs pretty hard 3 or 4 times to get going. I just got finished changing the old starter because it crapped out. I noticed there was some fresh metal shaved off the mating surface to the block

What could cause this? Is there something I'm doing wrong when I install it or is the flywheel some how sitting too close to the block? I'm at a loss and I am very ready to throw my hands in the air and find a new project. Please give me some insightful input

 

[Vr4junkie]

My first suggestion would be not to drive the vehicle at all especially with a lose timing belt your just asking for a rebuild check every thing before you start driving it again. Also was the car running rough before you took out the engine and changed the bearings?

And that starter looks pretty chewed up either installed improperly or something else.

 

[dammitjim]

Fix the timing belt first. Can you post pics of where it looks loose?

Your starter problem might be this - click

 

[toybreaker]

Dust shield/spacer plate get re-installed between the motor and transmission?

 

[Okayplayer]

The motor was running normal (other than the rod knock) when I took it out. There is a bit of slack between the cam gears. That's all I have accessible at the moment. I will give the car a once over to make sure I have all the tranny bolts installed. And I do have the starter plate on there. I will have to check the condition of it. Thanks for the help so far guys. This should give a good start.

 

[Okayplayer]

Okay I gave the cars a once over and found sound loose tranny bolts. Yikes /ubbthreads/images/graemlins/uhh.gif So that sorted the starter problem as well. I also go the timing belt a tightening and the car is running much smoother. Now the idle is borderline ridiculous. It jumps from 1500 rpm cold to about 2500 rpm when it warms. I checked the throttle cable and there is no tension/slack. I also gave the ic pipes a once over and haven't found anything. I will do a boost leak check to see if I find anything. The ISC is newer and the tps is good as well. Any suggestions?