Installed the head, not too bad of a job and adjusted the valves and injector timing. All were off about the same amount. Was installing the rack arm tube and plinko, I dropped a 7/16 lock washer down inside the right rear opening in the head. Manual said to cover these with a rag so not to drop anything in there, go figure. Borrowed a scope and sure enough there it is laying in the bottom of the recess of the balance shaft channel. There are three separate channels and of all to fall in this one is the best, no oil drain hole and lots of clearance, it will fill in with oil and there it will sit. No way to reach in with a magnet or other tool, of course it could not just drop in straight it had to roll in past where you could not reach.
Rolled the goat outside and took the engine out of the back of the carrier and lowered it near the ground. Pulled the transmission and removed the clutch assembly. The clutch was toast, the throw out bearing was dry and really would have screamed, also the pressure plate was quite rusty. To add to all of that the release arm fell off the ball stud. The special spring clip inside had broken one of the two ears off, it's a horseshoe shaped round wire clip that fits in a groove inside the arm. By some miracle the small piece that broke off was lying in the bottom of the bell housing. Not having a clip I welded the broken piece back on and snapped it back in and tapped the arm back on the ball stud, it worked! Next I replaced the 1 7/8 hose tucked in behind the RR motor mount, would be impossible with it in the truck and I could see rust stains where it was leaking. It was a pain but it's replaced. Flushed out the water pump with the hose and now ready to install the engine. The engine actually went in easier than it came out, it just about fell right in where it needed to go, including the universal for the TC.
Tomorrow I'll start to bolt everything back in and continue on, getting closer though.
