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Re: 1967 GMC K20 " The Kodiak"
If it were mine, I'd get the engine out, get it apart and see where it goes from there. Get the most of the rust out of the cylinders, take it to a machine shop and see if the block is cracked, not usually expensive. Boring and decking the block would get you a useable block.
I've taken apart worse looking blocks. There's little things that can help out...
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