Little update. I haven't heard back from the machine shop about the engine, but have been picking away at cleaning up the bellhousing, getting parts lined up for the starter rebuild, new clutch and pressure plate, I decided I should pull the SM318 and give it a quick once over... When I pulled the fill plug (I always do that first now ...) I found some gray paste. I then pulled the drain plug, and there were lots of chunks under all the gray paste. The oil is shimmering to say the least...
I also found the bellhousing has a bit of a storied past.
Anyhow, I think with the each of the new discoveries I encounter, it is making the decision to swap a sbc, and a Turbo 350 (or similar) into this much easier. Thinking of using a Ford 8.8 rear end. Maybe. Maybe not. I have a line on one built to spec for what I want for $4k, based off a Ford 9".
