sstock,
The oil and dirt over the years has darkened to paint, but it looks like many I have seen through the years.
Your second picture of the restored engine looks great, I see just a hint of blue in that gray. One note...the bell housing should also be gray. Bell housings were installed on the engine (so they could be test run) and painted as one unit at the engine plant before they were shipped to the actual body assembly plant.
Mike B
