Ok, the diagnosis is complete. Just drove back from the shop. The ding bat on the phone Friday was simply no help, how ever it was well diagnosed.

1. The engine sucked in light duty metal, mechanics best guess BUTTERFLY VALVE related! Strange since butterfly valve stuff should be out.
2. Metal was found in cat, so it went through the exhaust side.
3. No Metal in Pan.
4. Cylinder 1 is scored, but shops opinon is it is not a problem.

So yanking the heads and replacing damaged valves is the likely fix. Maybe even prepping some heads from the AZ crew stock in advance, and adding these to the back up pile to save time? Also going to get a quote from the local shop.