Did you see the pics? Yes, the pistons were in correctly. I'm not a complete noob lol.
The pics show perfectly that the squirters hit the cutout. The cutout was just put in the wrong place.
$360 for new oil squirters and a new oil pump. That's the only thing I am really frustrated about. I just want to get a new pump and a stock crank pulley to put on there. Hopefully Greg V can help me out with the piston battle. I know it's my fault for the pistons melting, but the oil squirter damage and the pump are caused completely from the pistons. There was no installation error on this build.
BTW if anyone has any questions about how the pistons were installed. Here's a pic.
Correctly installed pistons