The bearings are shot. the regular parts can be saved by removing the rust like whatiworks4 says. to replace the bearings put the new bearings in the freezer to get real cold and then heat up the engine block with the old bearings in it. the hot engine should allow the old bearings to fall out when you strike the engine on a flat wood surface. do not force the new bearings in with anything metal use big wooden dowels to protect the bearings. keep engine warm when putting in cold bearings