CALLING ENGINE GUYS/GALS

Seller is long gone.......I am planning on tearing it down before installing it. Correct, the engine has never been run so you are right they are not seated. I was wondering if the "unseated" condition would account for the crappy leakdown readings.
I'm not hung up on the leakdown results, as I agree with others here about the fact that it hasn't been run directly contributes to that poor result. What I'm more concerned with is how crappy looking the "work" that was done looks. I think you will be in for some more surprises when you do a complete teardown. I would be surprised if it actually has new rings, bearings, etc.