You're fine, totally normal for the situation you're describing however I'd pull the plugs out turn the motor at least 760* to make sure there is no binding or anything hitting. Easier to do it now <img border="0" title="" alt="[Wink]" src="gr_images/icons/wink.gif" />

 

I have the heads back on and torqued down. Now, when I turn the engine over by hand, its really hard because I have the sparkplugs in, but I can hear pressure bleading off somewhere. Its kinda like air escaping? Is this normal?

 

Yes, thats air going past the piston ring gaps. With the spark plugs in you are compressing the air in the cylinders and its escaping past the rings.