Not so much rust but castor residue and that's exactly what I expect an engine to look like when I receive it.. Most of the time I order the Boca Bearings before I get the engine. I just received this Saito 182 and it looks great and is great, no cam or lifter wear, rocker arm tips not worn. But when I pulled the cylinders and the cams off, the rear bearing was notchy as you described. I had a new rear bearing and am waiting on a new front bearing from Boca.
