The bare blocks I keep oiled and bagged. The cranks oiled and bubble wrapped standing on the flange end. Rods I oil and bag also. Heads I just leave as is and have had no rust issues ever. Parts I store in the basement I wrap in plastic then newspaper on the outside of the bag. The newspaper absorbs the moisture and prevents the parts from rusting. Sounds silly but it works. I've had parts stored for years with zero rust. I would dissasemble the engine ASAP. Then you can inspect the parts for wear and check for damage. This way you will know exactly what your dealing with and will have no surprises later on.....G.