I just picked up a rebuilt 261 that had been sitting for many years (bored .030 over and never run). It was sealed up pretty well and stored inside so I was hoping it wouldn't have any issues but no luck.

Overall picture: https://i.imgur.com/MBXTfI2.jpg

I pulled the head off and found some rust on the deck of the block as well as in the #2 cylinder.

Here is a picture of the rust on the deck. It is just limited to the combustion chamber area and doesn't impact any areas sealed by the head gasket.

Deck pic #1: https://i.imgur.com/Yt1SdXe.jpg
#2: https://i.imgur.com/6HLnA1s.jpg
#3: https://i.imgur.com/HyPQJNh.jpg
#4: https://i.imgur.com/Emzg2WB.jpg

Here are some pictures of the #2 cylinder. All the rest are perfect but of course this one had to have some rust. I can spin the engine over and it doesn't seem to drag or bind when it reaches that area

Bore pic #1: https://i.imgur.com/qo0ZRk8.jpg
Bore pic #2: https://i.imgur.com/AnvEeQb.jpg

My gut tells me to at the minimum have the #2 cylinder honed if not sleeved. I'm assuming / hoping that since the rust on the deck doesn't impact that head gasket that it shouldn't be an issue. But i'm no expect so if anyone has any advice i'm all ears.

Thanks!