A few weeks back my engine started to make a bad noise so first thing I checked was the valve train which seemed to be ok then a week later I pulled the oil pan to discover chunks of piston two in the pan

This will be my first engine build and my plan atm is as follows:
Machine Work:
Jet Clean Parts....................$165
Magnaflux Block...................$Lost the price :p
Magnaflux Head...................$Lost the price :p
Bore and Hone Block.............$125
Assemble Rods and Pistons......$40
Valve Job..........................$125
Magnaflux Rods...................$40
Deck Block to 0...................$115
Balance rods and rotating.......$130
Resize Rods........................$90
Grind/Polish and shotpeen......$79
Install Cam Bearings..............$60
Check Line Hone..................$50
Parts:
Icon/Keith Black IC944 Forged Jeep Stroker Pistons 0.030" oversize
Hastings Moly Rings
SCAT 9-4.2L-3895
Clevite Rod Bearings
Clevite P-Series Main Bearings MS704P10
Clevite Camshaft Bearings SH1980S
Fel-Pro CS81693 Conversion Set
Fel-Pro HS9076PT3 Head Set
Cloyes C-3041 Timing Set
Melling M81A
Comp Cams High Energy™, 252H: Cam & Lifters CL68-200-4
Sealed Power 381-8084 - Sealed Power Freeze Plugs
ARP Rod Bolt Kit 146-6001
ARP Head Bolts
Stock replacement Springs
ACCEL 120330 Distributor Cap
ACCEL 130330 Distributor Rotor
Champion RC12LYC
Amsoil SAE 10W-30 Signature Series 100% Synthetic ATM1G-EA
AMSOIL Antifreeze and Engine Coolant ANT1G-EA
AMSOIL Ea Oil Filters EAO42-EA
Total should land right around $3K
I plan to degree in the Cam and also use plastigauge on all bearings.
This should give me the following compression Ratios:
Sea Level - SCR 9.47, DCR 8.27
Tucson (2300 ft) - SCR 9.01, DCR 7.81
Do these numbers mean I can run normal pump gas in Tucson (where I live) and higher?
Cam is the only thing that still concerns me but it was mentioned in another site and the owner of the machine shop says thats what they have used in the past in 4.0 strokers.
Thoughts??? Comments?
Cheers
Chris