Joe, my first thought is it didn't get that much sludge sitting around not being run, but I could be wrong. I'd get a micrometer and start checking everything. Look to see if there are any signs it has been rebuilt in the past.
50 years ago I bought a Ford flathead V8 from a junkyard. When I got it home, I pulled the head on one side. There was no ridge and the valves (from what I could see at first) looked okay. I was thinking I had gotten lucky until I pulled the other head. Then I decided somebody before me had been there first, reamed the ridge, pushed out a piston or two, gave up on it and put it back together to see what they could get for it. I saved it, but it cost much more than I hoped it would. Good luck!
