89 Nissan 240SX - Over-Filled oil after overheating

[Rowdyone]

1989 Nissan 240SX KA24E S13 - SOHC. Manual Transmission

Long story here that needs to be told so folks understand the extent of the problem.

Engine was running rough when wife drove the car up-state against my objections since the noise it made sounding like timing chain slap. On the way home the car started heating up and running rougher. Rather than stop and call me she decided to check the water and oil. Of course it needed water since it over-heated but she also added oil thinking it needed more. She repeated this several times inching her way south before finally calling me. When she told me she had put in several quarts of oil I did ask if she was checking the oil, "it has to be going somewhere!" and she said she was... Against my further objections she tried to continue driving however had to limp the car into a motel within an hour.

The next day I drove up to get her and checked the car. I stupidly let her start it and sure enough blue smoke rolled out the tail pipe. Told her to shut it down and arranged a tow home for it. Got it home the same day amazingly ($150 - dirt cheap any day much less a Sunday).

Next day still dead headed I went out to look over the car. Wanted to hear it so raised the hood, check the radiator then started the car. It ran very rough. Was obviously dumping oil into the two front cylinders since the exhaust manifold was cooking it off. No oil light so I Idled the car up a little to see if it would smooth out and it did for about 10 seconds. Then the engine died then I clearly heard 4 loud "TAP's" just as the engine was rotating to a stop. NOT before it stopped. First it lost ignition/power, then the 4 loud TAP's as it stopped rotating the crank, like metal on metal (or a chain jumping over crank gear teeth?).

Did what I should have done in the first place and checked the oil, then checked it again a few times to make sure what I was seeing was right. It showed all the way up the dipstick! Raised the car and drained about 6 quarts from the oil pan, putting the plug back in periodically so I could check the stick. When it was at the right level I put the plug back in.

Of course the engine won't start. The radiator level is fine and only water/antifreeze. Level did not change while the engine was running. No bubbling or pulsing in the radiator. No metal flakes or bits in the oil. Getting fire to the plugs. No oil in the distributor. ECU shows Code 55. I checked it then cranked it a bit and rechecked it. Removed the fuel line at the ECCS and testing filled a jar with gasoline. Injectors are getting power. If I spray starter fluid in the ECCS intake the car acts like it wants to start. Otherwise it kinda rumbles at first when cranked then just more cranking. Took the valve cover off and all the rockers are working. Timing chain is in place but has a lot of slack in it. Not so much that I can jump it but I can pull it back enough to put it almost to the top of the next tooth.

Since I am basically sitting here kicking myself I decided to post here and see if anyone has input. The way I see it my next step is to put the crank on TDC then check to see if the Cam matches.

Thank you in advance.

[Buckshot]

I think the chain rubbed hole in front cover slowing water in oil