Things are progressing well! I found out that the caps and rods had cylinder numbers already stamped in to them which was very helpful. Not sure if it's from the factory or someone already dug in to the engine. Main caps are numbered too-- but that's factory.
The hydraulic lifter bores all look great. All the lifters came out smooth, no problem.
Haven't opened the main caps yet, but the piston cap and rod bearings all look great-- there's one or two where the copper color is showing slightly, but no gauges, or scrapes that I can feel with my nail.
The pistons all look uniformly worn with some wears on the sides, but no cracks/chips. The piston heads tilt easily on the rod. All the rings move freely.
The journals on the crank shaft look perfect.
The oil pan gasket was torn though-- perhaps over torqued or something. It was a black rubber gasket-- not sure if that was original from the factory.
All the gasket mating places look good and need minimal cleaning.
Only issue I see is on the passenger side of the block where the head goes, on the top side where I asked the question about the gasket 9 and 12 o'clock holes being blocked-- it looks like a casting defect. On one of the cylinders, there's an irregular area that's protruding cast iron-- not carbon. Almost looks like there was a hole there but was filled with a different material and not cleaned up. Doesn't look like a home job. Hole corresponds to the gasket hole. I was thinking of cleaning it up with a Dremmel to make it more flat with the rest of the surface. Thoughts?