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Sounds like a deal, but I'd still invest in a gasket set and tear it apart and check everything for yourself. Unless of course you can hear it run before you buy it.
As far as the old engine goes, ......yup. That's no bueno. Be sure to goop it good with silicone before you put that gasket back on. It looks like that one spot may be a little weak.
If she blew out that bad, I'd have those heads and the block checked to see if they are truly flat....or have them decked (machined). Chances are something may be warped. I'd hate to see you throw time and money into a set of gaskets just to have it happen again.