Had contact with the dealership through a MUD member. The guy who did all their machine work in 99 is no longer around (passed away) but apparently he peened lots of things to seat them. Dealership doesn't really see a problem with this. (I left names out to protect the innocent.

)
I am of the mind this morning to call James Toyota and ask how they can justify letting work like this pass out of their shop but I know it wouldn't accomplish anything. Oh well.
Tore into the 83 last night. Air rail got trashed pulling it off. I should get the head off this weekend to see if the head gasket really is blown. I've noticed a few differences between the 76 and 83 2F so far. On the 76 IIRC the fan bolts directly where as on the 83 it bolts to a pulley??? Maybe I was missing something last night...was in a hurry.
Push rods had rust on them from the milkshake (I already knew this) but it sucks to see it again.
I took a bunch of pics and will upload them this weekend.
Here are my current plans.
Parts from 83
Block
Flywheel (should be balanced better than 76)
Clutch (need to check - ETA: still undecided which to use)
Bell housing
Cam (polish)
Crank (polish)
Oil pan
Pistons (need to check)
Head (had good compression - will have rebuilt)
Dizzy
Side cover
Valve train (will clean rust up from milkshake)
Valve cover (will clean rust up from inside from milkshake)
Manifold (will desmog)
Air cleaner (w/ spacers to fit carb from 76)
Push rods (will clean up)
Water pump (76 is new but I believe it won't fit)
Parts from 76
Fan
Carb
Fuel lines
New items
All gaskets and seals
Lifters
Main and rod bearings
Anything else that I can't think of from the 83 that the milkshake got to
Rings
I am going to hot tank as much as I can to clean/strip it then I'll repaint - but not Big Gay colors.
Man - I'm all over the place with this rebuild.
