Bobin,
That's an ugly picture. Was the PO of this engine using it for a mooring? I hate to say so, but I suspect you're going to find additional holes when you progress with the needle gun.
I recommend you consider a different head. Our host sells new ones, and used ones are available on eBay now and then. Depends on your budget. I had a couple of spares but got rid of them when I moved two years ago. Perhaps one of the other denizens of this board has a spare head - anyone? I suggest you start directing your efforts toward getting that head off rather than removing the rust from it or repairing it. Scrap value is higher with the rust..
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