Once the engine has been drained of oil and removed from the equipment it should be cleaned. Dirt is you greatest enemy. Now that the outside of the engine is clean. Move it to clean work space and use your service manual to disassemble the engine. A good tip is use your VCR Camera to tape yourself taking the engine apart. Its great to be able to look at the tape to see what this thing is and where it came from.
As you are taking the engine apart, inspect each part for signs of wear. Make notes and/or talk to your Camera about the the parts and their condition. Important things to look for are signs of discoloration (caused by heat baking the oil into the part), aluminum that has melted and stuck to other components, scrapes and scaring. You want to know what has been happening inside the motor to be able to avoid another breakdown. If you do not fix the cause of the failure it will probably happen again. If at any point you realize the cost of the rebuild will be more than 50% of the cost of a New Engine its a rule of thumb to replace the engine.
credit: super chevy
