Install the two dowels and the forward chain guide.  Carefully lay the head gasket in place.  Then install the cylinder head.
 
It’s at this point in my story that I must plead stupidity.  I got on such a roll that I forgot to take pictures.  I’ve searched all my photos and I just don’t have any pictures of the head installation.  But it’s pretty straight forward.

I oil the threads on the cylinder studs with clean engine oil and I apply Loctite 592 Teflon Thread Sealant to the tops and bottoms of each copper washer for the head nuts.  Then I torque it to spec in four increments.  I have found that silicone sealant screws up the torque and you don’t develop adequate stress in the studs.  The Teflon sealant works great, and it doesn’t leak.  This old post gives you some valuable info on cylinder stud stress.

http://suzukisavage.com/cgi-bin/YaBB.pl?num=1576269113/12#12

This is the sealant I like for the cylinder head washers.  If you use a different sealant you may not develop sufficient stress in the studs.

I fill up that hole with silicone sealant to provide additional assurance that I don’t end up with a leaker.  There’s release agent on the bolt so I don’t have any trouble removing it once the sealant sets up.

The cam goes in next.  Apply a light coat of assembly lube to the cam bearing journals and to the cam bearings in the head.  Don’t get lube on the sealing surfaces.  Set the timing mark on the alternator rotor at TDC.  It must line up with the mark on the alternator cover.

Sometimes you have to index the drive gear a little to achieve correct cam timing.  With a stock cam, the factory mark on the drive sprocket is generally lined up with the mark on the crankshaft.  But for this DR cam, I ended up retarding the drive sprocket one-spline in order to achieve correct timing mark alignment on the cam.  The important thing here is you want the marks on the cam aligned correctly when the TDC mark on the alternator rotor is aligned with it's mark on the alternator cover.  This shows the drive sprocket retarded one-spline.

The cam timing is perfect.  To make sure it doesn’t jump time, install the cam chain tensioner.  Then install the lock plate and the other cam sprocket bolt.  I set mine with red Loctite also.
 
Don’t forget this doodad.  Place it on top of the cam journal and roll it into the groove.  

Don’t forget the infamous head plug or the plug on the right side of the cam.  I use the stock head plug with a strongback inserted to limit any upward movement of the plug.  I actually like the design of the stock plug, but I hate the fact that it can migrate upward.  The strongback limits movement to about .001” to .002”.  Haven’t had a leaker yet.

Install all the bolts in the head cover.  Make sure that the special sealing washers are where they belong and that all the bolts are installed in their correct location.  There’s a great illustration in the manual, use it.

It’s time for a humiliating confession.  I made a classic rookie mistake.  That old jalopy cylinder, the one I bored out in Part 1, the one that was all beat up with broken fins and 20 years of slop baked on; I didn’t inspect the three threaded holes in that cylinder.  As soon as I laid the wrench on this sorry bolt, I knew I was screwed.  The bolt head hadn’t even made metal-to-metal contact and I could tell that hole wasn’t right.  As soon as I started to tighten this thing, I knew the threads were gone.  Why did I not check those holes?????

It worked good.  I used a ¼-20 grade-8 bolt x 6” long.  Had to cut a few threads off.  It ended up 5-13/16” long.   This bolt, and the one just forward of it, can be repaired using this technique.  The one in the right-rear location can’t be repaired this way unless you remove the head.