Here are some picture of your engine taken at the machine shop. Once we started tearing into the engine we found that we will have to turn the crank which means we will have to install over sized bearings when we rebuild. We will also have to bore each cylinder .030 over. The reason for this is due to rust in the cylinder. We also encountered 33 studs that were very difficult to remove leading us to believe that the engine did not have hardened exhaust valves. One valve was so stuck that it broke in three pieces and we had to remove the guide that it should slide through. While the oil pan was in the acid tank being cleaned there was a piece of JB Weld that fell off of the drain plug. We will drill and tap the plug to ensure it will seal properly. The last thing we found was that the we will have to deck the top of the block. Which means we will have to machine the top of the block flat. We found that the top of the block was not perfectly flat which could have been preventing your head gasket from sealing properly. With all of that said it sounds like a lot of issues but luckily we can fix the engine and all of the components and will not have to replace any major components.