Quote Originally Posted by Scooting View Post
oil pump and bypass valve rusted in place
JMHO, but if the oil pump bypass rusted shut, you had water in the oil.
I'd bet you have rust in the oil passages going to the lifters and probably in more places than you think. I would pull a couple rod caps and spin the oil pump with a drill to make sure the crank is getting oil. And examine the rod bearings for possible scoring from rust particles, you may want to disassemble the motor and clean it out before any (if not already) damage occurs.