It may look that way in the photo, but in fact that is not the case. the cam gear was lying flush against the head material wheat the cam resides.
since I had a spare head lying around along with multiple cam gears, we (oak and I) tried every combination of head, gear, and cover, all yielding the same results = friction.
we then turned to Oaks innocent bike, resting nicely in the middle of the garage. we removed his side cover, replaced it with the one I was using, checked for movement, and guess what? It moved fine. no excessive friction or binding.
which led us to conclude one thing, my engine is F'd. using this new information to my advantage, I did the only thing logical. I ground down the side cover until it no longer came in binding contact with the cam gear.
I then proceeded to find the stripped oil plug threads. yay!
I have given out too much rep for today. you all have some coming. Hooray!