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That pitting is more than likely from the motor sitting static for a while, probably from a Jspec motor that sat in a shipping yard for a while... it doesnt look too terrible though as Brian mentioned, a lil hylomar and good OE seals and you'll be set.
A friend of mine's shop has an acid dip "boiler" they use to wash blocks and heads, I'll have to ask him what they use to clean them as far as chemicals. I have some spare housings we could dip and just see what happens as they're junk anyway...
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