These old rigs were built to work, not sit around in a museum or haul the high school homecoming queen a few blocks once a year. The most logical solution to your engine problem would be a later-model transplant, a good-running full oil pressure 235, or a 261 if you can find one. Get that one buttoned up to drive for now, and start collecting the bits and pieces for an engine swap before too long. You can polish out at least some of the roughness on the crankshaft with emery cloth, using a shoeshine motion to get it as smooth as possible. There's virtually nothing you can do to improve the condition of the camshaft lobes- - - -they're history, along with the bottom of the valve lifters, most likely. Used camshafts come up on ebay pretty often at fairly reasonable prices, so consider replacing the cam rather than reinstalling that one. It's really bad! I normally don't reccomend a used cam, but we're talking about an engine here that's basically on life support anyway, so "best-practice" repair methods went south a long time ago!
Jerry
