Sludge in the 272

Took off a valve cover this afternoon for a peek, and this is what I found. Note the goop on the screwdriver. Opinions on where I go from here?
 

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You've probably guessed by now that the rest of the inside of the engine looks about the same. :(
It might(?) be possible to carefully flush it out with a crankcase cleaner of some sort but I'd be concerned about repeatedly clogging the oil filter, or the small oil passages from the cam up to the rocker arms with all that freshly loosened crud floating around. An awful lot of it will end up in the oil pan (if the one I just pulled off is any indication) and the valley area, even after you drain it.
BUT..... the y-block engine I'm working on now is my first one and someone with several under their belt will have much better ideas than I do.
So wait and see what others have to say.
 
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At the very least you should pull the heads and completely clean them. At the same time you could have the exhaust valve seats replaced with hardened ones and check the oil supply holes in the block to make sure you get oil to the top.

Don't forget to clean out the rocker arm shafts.
 
dm and Paul are right. Heads, valley pan, oil pan, pick up screen. But before I did that, I'd run it with the valve covers off and check if oil is still getting to the rockers. That will tell you if the block passages are plugged. Has the car been driven much, or has it been laid up. Is the draft tube filter clean, and the oil fill cap mesh clean, or can you fit a PCV valve (just so a search for that, several different ways). It's always a chance, but worse Y's have been brought back if the internal passages are open. Lack of maintainance, no PCV or a plugged draft tube system, and non detergent oil did that to a lot of motors. Y's are pretty tough, and you may avoid a major rebuild. You should have an oil pressure gauge, and note the pressure, also.

If you get it cleaned up and running, changing the oil and filter frequently will help. If the oil looks good, at least put a new filter on and cut the old one open. See what's rinsing out of the motor.
 
AS miker98038 said.. they can be saved without major work. The most important thing now [apart from checking the oil is going through the rockers..easy] is to put the pan and clean it out. I bet your pickup will just about be blocked. Take the screen off turn it upside down smack it on the ground it will clean out ok.
 
Seeing how much oil the top-end is getting is key here, not that those engines were known for their abundant oil pressure. Especially with a lot of years on it.

If you go the scrape the crud out of it route, be prepared to clean out the pan as others mentioned. We used to route out the oil run-down passages in the head with an old piece of speedo cable in an electric drill. Worked great.

I'd also run it with a quart of Marvel Mystery Oil in it for a few days, just around town. Drain the oil, remove the pan and let the fun begin.
 
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