Piece of wire with a blob of superglue on the end. Stick it to the pin, wait a few minutes for it to set, pull it out. Acetone will dissolve the glue.

 

A magnet pickup tool like the one in the link below should pick it up, if you can see it from the hole. http://www.homedepot.com/p/General-T...9383/100123584

You can also likely access it by removing the freeze plug that is under that particular water jacket in the side of the block.

You can also leave it alone, as it likely won't hurt anything just sitting there in the water jacket of the block. You will need a replacement dowel pin to install your cylinder head.

 

I got it out with a magnet, got everything cleaned up and now the heads and intake are on. Thank you to all that helped.

Now does anyone have any tips on getting the intermediate oil pump shaft and distributor set right now?

 

Stab the distributor and rotate it until you can feel it lock on to the oil pump. No matter what, the distributor timing cannot be adjusted. Do this with the rotor pointing to the front of the engine and then rotate the engine until the rotor aligns with Cylinder #1. The best way to accomplish this is to have a helper turn the engine (crank) while you hold a yard stick that "draws a line" from #1 to the rotor. The PCM will correct and adjust the timing from there.

Bear in mind that the fuel sync will most likely have to be adjusted once you're finished and have the engine running. The only way to accomplish that is with proper scanning equipment.