Goldie you need a cam. That lobe is wasted and will be completely flat in very short order. That is where your mid range power problem is. The valve on that lobe isn't even opening half way. If it is a exhaust lobe then it is causing it to cough burnt gases into the intake tract when it opens.
See the pits in it. Just take my word for it. It is wasted. It is completely through the hardened metal.
I may be confused with the goals of the project, sorry. So the pistons and connecting rods are still in the block? I guess you are not worried about eggshaped rods and related?
I've used the black ultra Permatex RTV and like it, don't like the blue. (Also like their copper RTV, but haven't seen it in a while.) I assume you're using the RTV for the main cap and end of seals??? I wouldn't use RTV for the whole pan, or the side gaskets, since the pan end seals are designed for the thickness of the side gaskets.
Fel-Pro makes a 1-piece silicone pan gasket that I used once, $50, and it was shot (not re-usable as they say) when I removed the pan 4-5 years later. I went back with the 4-piece pan gasket set this time. Glued the cork gaskets to the block with 3M weatherstrip adhesive, then a light coat of RTV on the cork gasket when the pan was installed. Don't RTV both sides of the cork gasket, or it will slip out. Better to put the side gaskets on dry, than to RTV both sides (top/bottom).
There is a recessed area in the block where the main bearing cap sits. On the bearing side under the cap no sealant? On the seal side of the main bearing cap use sealant? If yes, perfect seal or RTV?
do I use RTV in between the gaskets where they overlap?