Well. Rather than pull out the body and start body work, I decided to start on the engine instead. I spent about 10 hours working on it today. I started with the full assembly and got it down to block / rods with only a few problems.
The shrouds were very rusted and it took quite a bit of work to get them all off. Some of the bolts snapped, and they will need to be extracted. The entire thing was packed with cotton and mouse nestings. They had filled up the fan shroud pretty extensively, and it would have been a huge problem had I run the engine like that. I'm glad I decided to tak it apart!
The engine will be getting new pistons and cylinders next week, and all new hardware. Will be going 1680cc with the dual Kadrons and header.. lighter pulleys and a few other performance mods. It should breath new life into this little 60HP engine.