I've been where you are so I can feel for you, on taking the word of advertisers of parts and services for performance boats, and I can tell you first hand you're probably not going to get any satisfaction from the seller. I bought a boat advertised here that was not what it was claimed to be, and then turned right around and let another advertiser shaft me on the engine work, so I'm batting a thousand. From the outside, it looks like the right stuff, but you'll never know til you look inside. I would take Chris's advice and not ruin the good stuff you may have by running it. You can take it down and if it is a HP500 and you want to put it back the same way, you'll only be out pennies for gaskets, rings, bearings and a valve job compared to what it will cost if you run it and blow it up, plus it's out of the boat now. You'll really be p-o'd if you put it in the boat and have problems. There are reputable advertisers on this site, but several of us have gotten the other 2%.

So you say you've spoken to the seller- what did he have to say about the rust inside the valve covers and the crusty exhaust valves?

By the way, whatever caused that went down all the open exhaust valves and caused the same thing to the cylinder bores.

Exhaust port in the #5 cylinder looks a little wet, probably wouldn't hurt to pull the heads at the least and have a valve job done with new guides. You could check the pistons and cylinder walls while they are off.
My 500hp was a 98 model in my DCB Extreme and it was all blue.

I don't know if this makes a difference or not. The picture of the exhaust valve is the only one that is rusted. There is one on each side. The others are not rusty.

Can any one say what it's probably gonna cost me do everything i need to do i mean just a rough cost like the most it should cost to the least just and idea so i know whether to have someone start now or wait till i can save enough money back to get it done. This fuking project is already cost over 11000.00 now with out labour. I mean you got the 8000.00 motor 3000.00 hydraulic steering 500.00 sea strainer and 500.00 miscellaneous **** hoses fittings ect.

Maybe because it's 330 2 bolt short block?

I would pull the pan and see what parts are there. If it has the good interals, pull a couple caps to look @ the bearings, do a leak down test. If the bottom end is good, pull the heads and go through them. You will atleast have some confidence in running it for awhile. Good Luck.

All it takes is one bad valve...

As far as cost, it shouldn't take a competent marine high-performance engine shop more than a few hours to put it on a stand and pull the heads & pan. 90% of what they'll do is visual- the only thing they'd probably want to do is a quick plastigage on the mains & rods. At a bare minimum, it'll need a valve job ($200) and gaskets ($200). If it needs disassembly and a hone, with new rings- $500-$750. If the bearings are open too much, you might get away with a polish and new inserts. If you do that in conjunction with a hone/rings, maybe anonthe $350. If you need the block bored, the crank ground, new pistons and bearings, figure $2 grand to $2500, plus the top end/gasket cost. If you go that far, you'll want to put a better cam & hydraulic rollers in it ($1000)

Bubba can do it for less, Sterling is going to be more (waaaaay more). The key is a MARINE HP builder that knows what they're doing. You could be a NASCAR or NHRA world-champion engine builder- doesn't matter. If you don't understand the differences and needs of a marine engine, it won't last thru break-in.

I just wanted to let you all know that i appreciate all the help you guys have given me. Its nice to know that there are some people out there that are not out to fuk the next guy. THANKS

Does any one have any recommendations on who i should take the motor two i live central Illinois Peoria area and i have called all around and no one in my area is High performance marine mechanic. So really don't even know who to call o where to start. I was thinkng about calling Ateco engines in waukegan they are about 200 miles from me has any one used them or know anything about them.

I hear Ateco is good company to deal with

I have also used Keith Bremmelkamp (Water and Wheels) to rebuild my mercury 600SC's

Picked up the boat and went from his shop in Illinois to Florida and ran Miami to Key west with not even as much as a leaky hose
had over 200 hours on the rebuild with zero problems 815-363-9782

If you own basic tools, we could probably walk you thru basic disassembly and inspection. A local shop could refresh the heads if they just need cleaned up.

Do you own a torque wrench?

Wesco in MI is another guy to call.