This is what I get for buying site unseen.....

I've made one purchase without running the motor. My attitude was the motor is the easiest and cheapest thing to go wrong (when plenty were available in the yards) but a rusty body was the death knell to a 240 in my care.

I think you'll fix this without too much expense. It does sound like someone attempted a timing belt replacement, and maybe front seals along with it, and you'll just have to take it apart and do it right. Maybe replace that crank gear.
--
Art Benstein near Baltimore

"And a step backward, after making a wrong turn, is a step in the right direction." -KV