My guess is dirty and worn
So maybe the thing to do while I am there, is to pick a rod bearing that is in down position and pop off the cap and inspect it to see what info it may give me. That way I am not rotating the engine yet and can see the condition of a bearing that has been setting in a cesspool of oil, water, etc. If it has rust or extreme wear or it's looks good, I can at least know what to expect from the others. My guess is dirty and worn. The water seemed to be on the bottom of the pan and was low enough that the crank @ BDC was still out of the water. At the same time, condesation may have been enough to rust more than I expected. Clean and oil and replace the bearing and cap. No fowl.
From what I am getting out of the shop manual. The engine is unbolted @ the mounts. Just the two side mounts? (Good time to inspect the mounts as well). Lift about an inch and blocked. I do not have an engine lift. Where might you suggest the lift point be? (352) The pan and pump are removed and reassembled at the same time. Thoughts on permatex sealant w/ the pan gasket? If so the blue or black? I assume the factory never used a sealer. My pan gasket is cork. Upon reassembly, fit the pan loose and bring up to factory specs on torque,(What is that #?, I have yet to find it. I figure around 12# as a guess) working from the inside out. Let's have a cold one. If there is an obvious that I am missing, just let me know. You folks are the best. OBTW, I had my first t-bird dream last night.