Pulled the engine from the 1966 Thunderbird for a replacement block for the Starliner. Needless to say YUCK. It did not look to hopeful when I started, water had got into the oil and engine rotted from the top down. As I pulled it apart and got rid of the rusty top end the block itself didn't look too bad. The water in the pan had raised the oil level to the bottom of the crank and prevented the block from rusting on the lower end. Will clean it up today and look for cracks.

New Engine installed. Looks Great, started right up , runs & sounded good. Now the BAD NEWS discovered water leaking between engine and transmission couldn't find any leaks, from top or any obvious sources. Pulled inspection cover from the bell housing to confirm that the water was coming from the back of the block. Decided to pull transmission, torque converter, bellhousing, and fly wheel, discovered a crack on the back of the block just above the center of the crank. Will pull engine out of the Starliner and tomorrow pull the engine out of the 1966 T-Bird that I brought home. Picture in an earlier post. Crack outlined with chalk totally unexpected! The Crack of Doom is marked in Black.