Today's update:

I was told by John Eagle that I was sold a bad engine or the engine was damaged when it was built (is that even possible?). The timing apparently checked out OK and the engine compression was fine.

I don't have the time or inclination to go through this whole process again. Is there anyone in the Dallas area that does this kind of work? John Eagle agrees with Bankston. They will not put a 3.0L motor in the car. It must be a 2.5L motor. They quoted $5,300. :-)

The floor is now opened for suggestions up to and including pushing the thing off a cliff.