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First a build can go bad **** happens. parts fail , bad work both.
Many of us do not see SE as a high end parts. We experience teaches lessons. Add to that dealership work and it becomes a crap shoot.
No secret HD lifts have a hi failure rate.
I hope it was still under some kind of warrant.
I doubt it was a lifter cuff failure. Maybe a install failure of the cuff. Different way of looking at same results.
That's a mess, sorry it happened to you. I would suspect the lifter was the culprit. Bearing rollers broke internally, or just got tight and started sliding the roller on the cam lobe. I would strongly recommend replacing the oil pan. It's really hard to get all of the shavings, etc. out and you can't see around the top of the baffle plate. The entire oiling system needs flushed out, including the cam plate.
If that is an acceptable finish of a SE lifter, they can keep them. I could cross cut a 2x4 with a hand saw and have it be smoother. Seriously, if that's "okay" I can see why Moonshine has their own stuff made.
What you might do with the oil pan is send it to Jim Libonati at Mega-Flo. He's reworking one for me right now. Spot faces the cast in rivets off, drills and taps for screws to make the oil pan able to be dissembled when needed. Images of his work at the link below.
How do the lifter bores in the case look? The metal coming off the cam and lifters is hardened (perhaps not enough in this case) and can cause significant damage to the bores. And leave hardened metal impregnated in the softer metal.
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