318 LA rebuild after losing a valve seat

Also, what exactly do you mean by having a bearing upside down? I understand the possibility of having a cap backwards, but are the halves of the bearings specific to cap/rod?

Yes bearing in upside down or backwards, little knotches in the bearings go into the casting holes. As you probably know.

Was your crank turned .010 / .010 and verify your bearings are .010 sized too.

Being your rod caps are loose and lubed, would be guessing your pistons and cylinders are dry causing the tightness ??

A place to start.