Putting an engine in my mk3 - best approach?

[MikeG]

Hey - so I'm about to buy a green 90 supra, targa, turbo, interior torn to shit, but body is pristine. Engine and tranny (5 speed) are removed from the chassis. $600. The people are throwing in the original tranny and what's left of the engine, and then I can decide if they're worth repairing or searching for a complete replacement.

Now, if I understand these folks right, they have the whole engine torn down, and in some kind of at least considerable condition - except for the block, which during the flood got half rusted to shit.

I'd like your opinion on what approach I should take as far as getting this thing running. A couple questions:
-Is a rusted block recoverable, or would it be better to find another block and start from there?
-Maybe these people don't even have half of the parts of the engine. In that scenario, should I try and get another motor used and start there, or obtain all the parts to fit in with what I do have and work from there?
-Any other comments or advice you could provide?

Thank you. (: