Ok, so short history before I bring you up to speed and ask for advice.
I bought the boat 2 years ago and it had sat unused for or lightly used for 2 or more years.
It came with what was supposed to be a mercruiser 260 from another boat with unknown hours or history, but ran on muffs.
I have verified from the block number that it is in fact a 350 engine, but virtually all external parts, intake, carb, distributor, exhaust, even the valve covers came off of the 305.
After the first year outside, I took the engine out and put it in a heated basement without ever trying to start it again.
I did a compression check but did put a small amount of oil in each cylinder because it had been sitting so long.
I cranked the engine over quite a bit, but never added more oil and I got 140-150 on all cylinders except one that was 130 - 135.
Jump forward one year, I have a small compressor and decided to redo the compression check and at least attach the compressor to listen to where the air is going.
I had put some marvel mystery oil in each hole a year ago, but did not add more oil to the cylinders for the retest.
This time I go this:
#1 150
#2 60
#3 120
#4 130
#5 150
#6 150
#7 100
#8 150
I did not get around to doing a leakdown on all of the cylinders, but did test #1 and #2 and i could here air in the intake in both cases and it really didn't sound much different. I think I need to finish doing the leakdown test (or do I?), but am I likely looking at cracked rings in #2 or might the rings have stuck themselves in the groove?
Assuming the pressure goes up when i add oil what do I do?
Remanufactured long block? Plenty of options out there - how do I find a good one at a good price (I found one as low as $1500)?
Buy a rotating assembly kit, have the heads done and the block bored? If so is it worth going to a 383? Similar costs to a reman (maybe even a bit more, but at least I know what I have).
Do the heads, hone and re-ring and call it good? Cheapest option, but.....
Buy a "good" long or short block on Craigslist? Ok, this is probably even cheaper.