Got the dirty truth about the block today. (see pics below). The was head and manifold gaskets were all burnt up and worn, lots of friction and wearing of the rod bearings, and the valves/pistons are rusted over in certain spots.
This does however mean great news for the rebuild of my engine
Taking the block to the machine shop and he is going to let me know what he thinks possibly rebuilding it and maybe end up getting a new block.