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Check sparks, fuel pressure, injectors (should have ac volts while cranking), and if all that is good, check valve timing. Do It Yourself Diagnosis and Repair
if it is a v8 the firing order is 1-8-4-3-6-5-7-2. looking at front of engine 1,3,5,and 7 are on right,2,4,6,8 on left. You must crank engine by bumping starter with finger over no. 1 plug hole until compression stroke is felt. Look at timing marks on crank shaft and turn to exact top dead center. Number 1 is usually the front tower on the distributor cap so you must get the distributor in block with the rotor pointed to this tower. It takes a few trys so don't give up. You may need to use a long screw driver to turn the oil pump shaft to match the tab on end of distributor shaft.
when you install the distributor the rotor button should point at the # 1 plug wire on the distributor cap make sure you are on the compression stroke of the motor when doing this you can verify that you are on the compression stroke by removing the #1 spark plug and turning the engine over while holding your fingure over the spark plug hole it will push your finger off the hole you need to spin the engine .spin the engine over slow while doing this so you don,t pass the timing mark on the harmonic balancer.
do you have fuel! is it petrol or deisel! have fuel filters ever been changed? if its a deisel you may have an airlock, if its a petrol then its the EMS (Engine Management System) and that could be costly.
deisels have high compression so I never put synthetic oils in them because they are very thin. I use a thick regular oil. It would depend on the weather where you live. I live in california and use valvoline 20 50. On an earlier vehicle the oils where not as complicated so just use a good regular non syn. oil and it will be fine with the seals, gaskets and bearings in your engine
Before you do the next oil change,get a can of motor flush.
This is the inexpensive method the free up the rings and restore some of the compression.
Use Shell 15W40 oil
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Do you know the history of your replacement engine?
When was the last timing belt change?
A loose timing chain and guide can cause injector timing problem.
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Start monitoring the coolant level for protential head gasket leak.
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To save time,I would do a high rpm (below REDLINE) highway ran to blow off all remaining diesel SOOT.
Let the shop to do a compression test.
DO NOT DO THIS YOURSELF.
The max psi is 1850 PSI
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Stay away from biodiesel blend fuel until you figure out what's the cause of the problem.
Use Diesel Cleen silver bottle and see is there any improvement.
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Add the recommend dose of SEAFOAM into the crankcase to soften the valve stem seal.
Leaky valve stem seal can introduce oil drop into the cyclinders over-night.
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Mointor any oil lose from valve cover.
The motor is probably ok,empty the fuel tank, change the fuel filters,and drain the fuel lines.Engine may need to be run several miles before feeling normal.
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