I think it would be great to keep the old 207. They seemed to be a reliable engine when they're not "shot" as you say yours is. The only problem with rebuilding them is that you have to have all new babbit bearings poured. This seems to be almost a lost art and expensive. Unfortunately the 207 can't be converted to insert bearings.
I went through all this with a '34 I had 30 years ago. I opted to keep the 207 and sent the engine off for new babbit. It cost me about $1,100 thirty years ago. I have no idea what it would cost today.
EDIT: Duh, I should have read Davy's post above before I replied. He already mentioned the same things and more.
Last edited by Old Gold; 10/18/2009 3:42 PM.
