I am amazed that thing even ran...you would have absolutely no compression in those two cylinders and coolant everywhere. I've never seen anything like it. Personally i would drag that $h/t back to the guy you bought it from! get your money back
damn crazy stuff, id say get a set of cheap stock e7's that look good, no chunks missing, clean up the bores, make sure you put the gaskets on correctly, and it should run fine, if your looking for real performance, take the motor out, scrap it, buy a 302 block have a machine shop machine it, and build it with some nice parts.
I can't remember if you said whether you had coolant in your oil or not. If you do have coolant in your oil, it's bad for your bearings, which would be another reason not to just throw heads on... Just a thought.
there were bubbles in the oil when I drained it. Most likely I will buy a newly rebuilt stock 302. The reason I am not going to call the guy back is because I got the car for $1000 and the tranny was rebuilt and otherwise the car is not bad. I could prbably get the car running with a fully rebuilt engine for $1500 which is only 2500 spent into it and I see these cars go for that much with 170,ooo miles and it looks and runs like sh1t.