Sounds like engine time to me. You won't really know what it needs until you get into it. Would he be interested in selling? Any rust?

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Jim

Jim,
Due to the car's condition, I belive he wants to keep it. He realizes that with a dead engine, its not worth much.

You could "roll" in new bearings IF the crank is not damaged, but it probably is and will have to be replaced if it was run until it quit. Further running without oil pressure will certainly put nice grooves and gouges in the crank. Turbo may be damaged from lack of oil also.