I have had a trusted guy strip it down and take a look and it is pretty much a worse case scenario.
The engine needs all seals, gaskets and bearings replaced. To me this is no surprise and something that I figure should be done while you're in there.
The really bad news is that the transmission/gearbox is completely crumbling apart. Apparently the guy has never seen one so obliterated. It's a bit of a hard thing to take because I hear these parts are going to be pretty hard to find since all the good parts get gobbled up by the bucket racer crowd.
Where do you guys reckon, apart from ebay, is a good place to look for a transmission?