Other than doing an actual comrpession test, then starting it up to see/hear how it runs there isn't much else you can do visually. Pretty much it all hinges on compression and the condition of the head gasket. These engines seldom show any wear on the lower end bearings. If its possible to do a compression test that would be your best bet to get an idea of engine condition. If it is low you could also pull the valve cover and just check to see if the valves all have clearence. Unless you found one that was actually treated well with regular oil changes chances are its half worn out or better. If it was in good running condition its doubtfull it would have ended up in the salvage yard.
The bellhousings are different, though I dont know if the engine will fit in the 2xx in the same straight up orientation found in the 7xx series. The whole reason they were tilted more in the 2xx series cars was so they could fit under the hood.
Jason
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