HOW bad is this really....?

[benbloom]

So today i replaced the lower radiator hose which was leaking, and discovered TONS of rust buildup where the hose connects to the engine block. the engine has been running slightly hot, but been drove all day without problems. How ramped is this rust likely to be within the block? i tired flushing with CLR and radiator flush, but its too extreme to be a fix. think I'm done for? any suggestions? truck had been siting for 6 years with just water or very little anti freeze when i got it.

attached is a photo with the hose off. looking into the engine.
thanks
ben