Made good progress tonight... about 2 1/2hrs and the heads were on the shop floor. Would have been sooner but we ran into some issues that I was afraid of. The severe rust on this engine had eaten away the points on a couple of the lower outermost head bolts to the point where they were round/smooth. Had to get creative.
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Cylinders and pistons looked good. No odd wear or scoring on the cylinders and all still had a distinctive crosshatch.
Creative head bolt modification...
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Found some bent pushrods...
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Found a good bit of crusty nastyness under the passenger side valve cover which happened to be the side with bent pushrods and a bad valve guide.
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Not sure if you can see the movement... but there was ~ 1/8" of side to side play on the #3 exhaust valve with the valve still seated under spring pressure. All of the others had a very slight movement (could feel it but not see it). #7 had the bent pushrods which I'm curious what causes that in these engines....
http://vidmg.photobucket.com/albums/v75/AcIdBuRn52383/F350%20Crew/VID_20160316_192920912_zpsnixvxvs7.mp4
Plans for tomorrow evening are to chase all the holes and clean everything up then hopefully set the heads in place. I'm going to pull a few head bolts and pushrods out of the original engine and use the best ones. Other then that, the engine looks to be very healthy and should have a lot of life left.
More to come.