Big Problem? (Machine work)

[SBC Maro]

Well, here's the deal. I took an old 350 I had into the machine shop to have them replace cam bearings. I wasn't praying for much, but I wanted something to get me by while I worked on aquiring a good motor. It just so happens that the previous machinist (Who, mind you, has quite a name for himself) had built a motor two years ago, as a personal project, and when he was done he oiled it and covered it, wrapped in plastic in the back of the shop.

The next day my machinst calls, telling me about how much wear is in the motor I brought down to him, and asks me to come take a look. I hadn't realized how many miles were on the block, but from the look of the bearings and cylinder wall wear, it was rather high. A ring on #3 was shot as well.

He showed me the motor that the previous machinist had built, all bored, surfaced, balanced, and assembled with great care. The shop owner and I go back (I fixed his computers at the shop when I was younger) and he offered me a great price on the motor "It's not doing me any good sittin' there" and the ability to make payments on it. Great sincere guy. The machinist and I look over the block, check casting numbers, and look at the paperwork for it. It was a very well built powerplant that was pieced together with care.

--guts of the question--

Well, I brought the motor home after making only a small down payment (This was yesterday) and today, when looking over it in more detail, noticed that there is some rust (very shallow, but enough that oxidized iron came off on my finger when rubbed across) on the top 1/8" of one lifter bore. maybe 60* around. All in all, about 1/4 of a square inch of rust where the oil may not have stayed put. This probably went unnoticed as the motor sat covered for over two years, but enough to do long term damage.

I understand that this is a very clearance-crucial area, and that the integrity of my valvetrain rests here. Is this machinable? Can this be repaired? or is this block hosed? It's such a well built motor that I'd hate to sacrifice it for want of a 1/4" patch of rust.

If pictures will help illuminate this issue, I will be happy to take some.

I finally thought I had found a good motor...

- cliffnotes -
Can a small area of pitting rust be machined from a lifterbore without compromosing the lifter integrity?