Is the gear side of the cam suppose to be round with a lobe? I think mine is worn down.

The points lobe is between the gear and the block. It is almost perfectly round, with only one slightly raised "hump". (the points only have to open .020")
The lobe on the opposite end is for the fuel pump.
If the points lobe is worn, it will have a groove in it from the pushrod.
If you decide to buy a replacement camshaft (used), make sure you get one for a K-181 (or a newer K-161, which also has the area between the valve lobes ground for rod relief) and not an M8 Magnum. The Magnums don't have points, so the eccentric is not ground on the lobe.
BTW: A new cam is over $100.

That sucks. Almost makes me wonder how much to invest in this motor before I give up.