Start the search for a 261.
I am, but I don't want to have to wait months to receive the 261 from my machine shop. Its not the only shop in town, but is the only one that I trust. If I do find a rebuildable 261, I will snatch it up, have it built and keep it in my inventory.
I will have the engine on a stand tomorrow morning to assess the extent of the damage. I have my fingers crossed that a sleeve will be an option. My machine shop should be able to knock that out pretty quick.
The '53 full pressure 235 only had 22,000 miles on a complete rebuild and ran like a top. Idled smooth as silk, plenty of oil pressure, and impressive power for what it is.
To be continues...