New to me engine

[Pvmt-Pndr]

I picked up a 427 TD for my C60. The stories goes it was a good running engine and the truck was scrapped. It's been sitting for 2 years. He even let me do a compression test on it before I bought it, which it passed. I bought it for dirt cheap, got it home tore everything off of it and out of it aside from the rotating assembly. There are still cross hatches in all 8 cylinders, no signs of rust.

The reason I tore it down aside from the obvious was to regasket it. Well that's done and I'm treating it like a fresh engine. I stripped the old points distributor to use as a priming tool. Here's my issue. I am getting 54 psi of oil on my gauge while spinning the drill. I'm only getting oil out of #2 intake push rod while I can see it trying to come through the rest of them and my wife verified with her ears (I'm partially deaf) that they're pushing air. I went through and readjusted the valves thinking I did it wrong. I got the valves to 0 lash following the procedure and went 1/2 turn for preload. I'm no engine builder but this is what I've gathered from the web. Did I do it right and am I thinking my drill just doesn't have enough nuts behind it?

Thanks