That sucks the "new" engine turned out to be junk...
That is what scares me about salvage yard engines that were "good runners" when pulled--many yards here pull engines and stick them up on a pallet rack and let them sit years--thinking being indoors in a "dry" building,nothing bad will happen...but condensation often rusts the crap out of cylinder bores in the meantime between it being pulled,and when it gets sold..
Its also dam near impossible to "hear it run" before buying,unless you bought a whole parts truck or scored one about to be parted out..
I would think you could come up with a decent tall block though--lots were used in school busses and C-60's...if your willing to travel,I could ask around at some of the yards here,and see if anyone has a good one ..I saw a "complete"oil pan to air cleaner 366 for 300 bucks in a nearby town on craigslist but it says "needs rebuilding"..