Those pics are really great and show allot. IMO, you have so much damage and variable amounts of wear throughout, the safest approach would just be a complete overhaul and measurement of all the components. Just no way to determine the level of parts replacement necessary to make the engine 100% again. I can determine a couple of things from the pics. No way in IMO, that crankshaft can be used again without grinding and polishing correctly. You can polish that thing till the cows come home and all your going to get is a smoother, out of round and tapered crankshaft. So it needs attention. While it is being reconditioned, the serrations can be dealt with as well. The root cause of the majority of the damage was a dirty assembly from what I see. I also see evidence of cap grinding that was done with a "packed" grinding wheel. Meaning the wheel was not dressed properly to open the grain and it leaves a burnished finish rather than a cool, clean ground surface. I can see this on the main caps and rod caps. Possibly the cylinders can be saved with just honing for a 2618 alloy forged piston. They can run up to .006 clearance which gives you some room to work with. The cam and lifters look to be in about the best condition of what I see in the pics. Sorry for the bad news. At least you caught it before something came apart or overheated and seized. It can all be fixed. FWIW, I prefer the 2-piece BOP seal. Easier to install and I have never had one leak. Other people have had different results.
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