That head looks pretty typical for a stovebolt engine with some mileage on it. I'd suggest finding a good machine shop with an oldtimer who is familiar with these engines, and have them do a pressure test and/or a magnaflux check for cracks, do a good cleanup and a valve job. Pay particular attention to the valve guides, as they're prone to sticking and bending pushrods.
While the head is being reworked, take a stiff-bladed, razor sharp scraper and clean up the top of the block and the pistons. Be careful not to nick the top of the block. Check the block for warp with a straight edge and a feeler gauge. I think a maximum of about .002" gap under the straightedge is the desired flatness you're looking for. It's pretty unusual to find a warped block, but check it anyway. Good luck!
Jerry
