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Engine seized 700

Looking at an engine block removed from a 1992 740 turbo. The engine sat for an extended period of time after a head gasket failure which resulted in massive amounts of coolant in oil, hence the rust on the internal components. The engine was turning when we got it (still with coolant in oil and all that), we had the oil drained and the head removed, unfortunately had to let it sit for a few more months before getting to fixing the rest. After cleaning the surface rust from the top of the block, tried to turn it only to find that it seized. After puring copious amounts of penetrating oil on the piston tops, and seeing no effect, we pulled the block to see how bad things were; the pic below shows the shape the cylinder walls are in. At this point I'm looking to see whether the block is salvageable -- I can probably find a better one on a local wrecking yard for not much money (though decent condition 740/940 turbos are getting hard to find), but my son is curious if rebuilding the thing is within our capabilities. I can see myself paying for honing the cylinders, putting new rings and reinstalling the pistons, but not for letting a machine shop do all the work on restoration. The car is a project, obviously.
--
'98 V90 234K '98 V90 157K '94 940 NA 189K







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