Well I tried to clean up as much as I could, but this engine is history. The crankcase is corroded - fins crack and break like biscuits, all the screws are corroded beyond repair - cant open it up.
I can see the inside from the carb opening and the conrod is fubar. probably so is the crankshaft, conrod needle bearings, normal bearings.. the carb is beyond repair, I would have to buy a new one.
I tried to get off the muffler but one of the bolts broke so I drilled it out with a same diameter drill bit but the muffler is basically welded to the exhaust port - I couldnt remove it even with a heavy plastic hammer..

unfortunately the cost of repairing and restoring this engine is no where near logical.. Its probably been down in the lake for over 3-4 years..

Its kind of "case closed"