The cam sounds just right: they have a"flat side" to them on both lobes, more so on the intake lobe. Overall height on a brand new intake lobe is a little over 1.411", for reference. Mine are quite a bit less than that, after 96,000+ miles. Those seals often are mis-installed, even from the factory, because they shift easily while torquing and it's hard to detect afterward. Seat everything carefully, set the cam towers fully down, then install the bearing's holding bolts from the center out to the edges. That long center one (4 in all) must be no more than 8 ft-lbs, or it will pull the threads in the head: there is only 5mm of threads on those center ones. Put a little Loctite on it, too, to help seal and hold.
Chances are, once you removed the head nuts, the base gasket at the bottom of the cylinders lost its seal around the oil-fed engine studs. It will probably leak upon reassembly and a good hard ride, so you might want to pull the jugs and replace that gasket. If you leave the head and cylinders bolted together, you probably won't have to replace the head gasket (I never had trouble this way). When you torque it back together, follow this process to minimize startup heat flexing: 1. Torque the system down to the max torque value (inch lbs), then let it set for 24 hours. 2. Then, go back and loosen each nut, one at a time, one-quarter turn and retorque to the max value. Do this in the original torquing order.
When you go to put the rings back into the cylinders, be sure to oil them well first. That taper at the bottom of the cylinders might be a little rusty, too, so you might want to Scotchbrite it first for smoothness. This will ease the process: you can use a hose clamp (2 at a time), well oiled, as a ring compressor. Make sure the inside edges of the hose clamps are real smooth: emery paper around inside to make sure you don't scratch those well-sealed rings. Tighten the clamp slowly on the rings, then back off from tight a little so it can slip.
