Oh... well good news to an extent i guess. The burnt cover postions
made me second guess its overall condition. The color of the oil was
the only indication i could tell of that had water/coolant in there... The head bolts
no coolant puddles but rust ? But the top of the cylinder head had no noticeable coolant.

 

 

Nice work, looking good so far. Any pieces of plastic or metal down in there?

Now that you're this far into it, pull the rod caps, check bearing condition and if they look ok retorque to 46 ft/lbs. Same with main caps/bearing, torque to 76 ft/lbs. If you have a piston ring compressor, you should probably tap the pistons out and check the rings and cylinder walls. It's a bit of extra work, but then you've got a visual on everything in the block and know you don't have snapped rings or scratched up walls.