Yikes! Sorry to hear that. At 500 miles, it seems to me you had bigger problems than a distributor lockup. It sounds more like a bad cam install or a mismatch of some kind. New cam bearings can cause problems in these engines if not seated correctly. The new cam must spin freely and there are differences in Y Block valve train parts from different years. Did you change the cam or distributor gear when the engine was built? I would talk with the engine builder.
I once had a Y Block that broke the cam with the engine running. The motor quit. I pulled a valve cover and the rockers weren't moving. When we got it back to the garage, chucks of cam fell down in the engine when I pulled on the timing gear. Needless to say, that one was turned into a boat anchor.
