The engine is junk. The bearings arent just rusted, the front bearing is in little tiny pieces and there were balls just floating around in there. I have a webra 40 for 3 years now, and always used an after run oil of some sort. In winter, I plug the exhaust and carb after a good healthy dose of oil, and it has no corrosion. This is just unacceptable. I could see a bit of rust forming, but not to that extent. In manitoba, it is really humid.
I am also aware of Omega having after run oil (actually just rust inhibitors) that is what i run in my engines.
I bet that the engine was just run all season, then stashed away in a closet or shed for the winter.
Pilotfighter: The engine came with the plane, and two servos. I bought it for $20.00 (the guy really wanted to get rid of it) The way i see it, is im still ahead. I have a ST GS 40 that i got for xmas in it now. Its actually a pretty good combo.