I was really mostly curious about how much trouble it is to rebuild, but Rick, I get your point. as this is as much a learning experience for me, I've decided to give the rebuild a try. This bike was free, so I should be able to sell it for $1,000 when done. Not really trying to make money, but I know there will be costs and this should cover it.
I did get things stripped down a good bit and have found number 2 cylinder is shot for sure. not sure about the rest till I get further into the motor. I know I don't have to remove it if it's just 2 and 3, but I'm going to anyway. Hopefully it will be a bit easier to work on and who knows what else we'll find.
I have it up on a makeshift table now and ready to complete the removal.
...and thanks for your input guys. I do appreciate your collective wisdom!