Crazyeights, thanks for your candor. I had a nice review of the parts with my machinist and we came to the conclusion the block needed honing at $80, the crank needed grinding at $175 and then there's rings, bearings, seals. About the same $ as a used low mile 1.8 engine. Alls to be gained from rebuilding is the knowledge that there's new parts and I know the condition intimately.
With the research I've done on Subie flat 4s, I've learned alot and still think my 1800 lb kit will do well with my chosen plan. Just maybe not this box of parts.
I am thinking this'll be parted out and take the $$ toward a great 1.8 long block.
Thanks for you all's input. I'll be looking around now.