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Personally, I would go the cheep route, yet still do enough to allow me to sleep at night. i woule drain the oil and see if there is any signs of water in there. If there is than I would probably be cheap and pull the oil pan. In a nice clean environment with both valve covers removed, I would push compressed air (with a painting filter attached) through each push rod hole until I felt comfortable, rotating the crank 90 degrees 8 times during the process.
with clean rags I would wipe down the crank in all positions cleaning all mositure I could get my hands on. Than when it is all back together, I would change the oil after 50 or so miles and then again in 500 miles
That is just me, and in all honesty, I tend to over-react (I completely rebuilt a perfectly running 350 with a bunch of high zoot parts simpilly because I wasn't comfortable with the oil pressure despite many miles of trouble free run time)
If it does require a rebuild in the future that is cash you would have spent now if you chose to rebuild so I say roll the dice and see if the above suggestion will alow the engine to hold out for you
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osseous manipulator
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