It looks like the cylinder sleeve spun. What do you do at this point in splitting the bloick? What causes this and can it be fixed? Is this block not a good one to rebuild because of this?

when I say spun, it rotated some, probably less than an inch.

Had this happen to me once.  You can split the engine like you normally would with the exception of that cylinder. Just pull the other half off that side, then pull the con-rod cap off to get out the piston.  At that point it will most likely take a machine shop to fix the sleeve issue.  Lotsa luck. -Adam-

That block is done for.

 

Cannot "fix" a spun sleeve they are cast in not pressed.

 

If you can get to the both pins on the other half the block will split.

 

Otherwise.......remove all the case bolts.  Wedge the block halves apart to where you can acess 1 nut each on the 2 and 4 con rods.   Then shove the halves back toghether, rotate 180 degrees, and seperate them again and you can access the other 2 nuts for the 2 and 4 con rods.  Comes apart after that.