Join Date: Jan 2005
Location: San Juan Capistrano
It's easy for me to spend your money, but...
If I were doing it, I would completely disassemble the engine and at least inspect the liners, rings, bearings, crankshaft, camshafts, followers, oil pump, .... I can definitely see pitting/corrosion where the rings sat against the liners during storage. Whether that is shallow enough to come out with honing, or whether the liners are shot is tough to say just from looking at photos.
The bearings / crankshaft, cams / followers may have similar corrosion damage. Without disassembling and inspecting them, it's tough to say. That fact that the engine had good oil pressure 30 years ago is nice, but doesn't mean much today.
San Juan Capistrano, CA
'63 Guilia spider
'65 Guilia Sprint GT