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Motors can be cheap, I've gotten some as low as $300 and some are way up there. I have seen new ones on GL for over $2500. If you want to possibly use the motor, I think the rocker arms are easy to pull. That should close the valves and make clean up of the rust easier. Look in our "alt fuels"...
Many times the valves look bad and the rest of the motor is in great shape. I'd pull the valve covers and blast everything with some wd40 or something to clean up the rust the best you can, then run it.