Bobbuff, are the rave valves still in one piece or does one look like one's been replaced after the fact? If one came apart that could have sent metal grenading into that motor. ~Clean and inspect those just to be sure. It could have been something as simple as a piston pin clip that let loose, did you find both of them securely retaining each piston pin when you pulled it down, how about the rings all there still?
There's metal missing somewhere that caused that, you just have to find it that looks just a little to bad to blame on a nasty chunk of carbon letting go and chewing up the insides of you motor.
Also, take a caliper and measure the width of the pistons and interior of the cylinders just to see if that motor's had some top end work done before.