
Decent motor, that.
The rust will need cutting out and new metal welding in. You will probably find its run further than you can see (will need chasing out further) but it's not a massive job by the looks. Will need really good rust treatment after repair, to stop it spreading back.
Whale penis looks jobby in there - blatantly doesn't fit a prelude engine bay.
What exhaust manifold/header is fitted?