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Don't waste time with the 198, pull it and sell the connecting rods out of it. Save your money up and put a good used small block in it, you'll be happier in the long run. A hopped up slant six puts out about as much hp as a worn out 318 2bbl running on 7 cylinders.

Yep if its a reverse rotation engine the serrations near the rear seal are cut in the wrong direction for auto use, it will leak like an old diesel. The heads wouldn't be of much use unless your building an engine for a truck or motorhome (low speed/high torque)the ports and valves are small...

A new tank will save you some grief once you start driving around. After 15 years any gas left in the tank is probably just a layer of goo sitting on the bottom just waiting for some fresh gas to loosen it enough to clog the fuel lines.