Corolla Motor Mystery

#1
I recently was given a 2000 Corolla CE which is in pretty good shape except that it doesn't run. The prior owner told me it simply quit running in the middle of a drive with no overheating. He also said it was consuming a good deal of oil...think adding every 400 miles or so. It also leaked oil on the garage floor after I towed it home.

It has low compression in all cylinders (between 50 and 70 PSI) which doesn't change much when oil is added so I'm thinking pistons/rings are OK. The timing chain is loose at certain points during engine rotation so that it deflects easily by hand between valve spring compressions. I erased the engine codes by mistake but one code was random cylinder misfire and one said something about manufacturer proprietary or something similar. Coolant is present below the valve cover mixed with oil.

I was thinking cylinder head gasket but not sure about that because usually that would be isolated to one or two cylinders? Alternatively, timing chain tensioner broken or not properly adjusted so valves are not correctly timed?
 
#2
Update: I drained the oil and of course, more coolant was found in there as well. There was no oil in the radiator. I also found a small metal shaving under the valve cover that was scrunched up in a little ball. This had the consistency of a small aluminum foil strip. I'm leaning toward engine swap with probably a stock motor from a junkyard.
 
#4
Good Morning
SAY NO 2 ALUMINUN LUGS, its a learning experience 4 me, learn from it the HARD way !

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Who the f-k would use aluminium lugs? Learning experince? Sure... but you have to be completely inept in the engineering and materials department to assume that Al lugs would be just as good as steel ones. And you do confirm your ineptness when you decided post that same old tired shit everywhere on this forum.
Buddy, no sane person would use aftermarket al lugs.
 
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