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hot, warm engine will test better.
Do you have a 2 bbl bottom end or 4bbl ?
A used 2bbl engine in the 130s would not be that bad if the plugs are looking good.
If your going to replace the bearings the new kit will come with new retainers.
Or like ckessel posted just file that dent.
Make sure to keep the fillings out of the bearing.
Plus remember to pack that bearing with grease if your useing it.
Look it over close for signs of galling , flaking ect.
Many of the old heater core coolant valves let flow through to the core.
Exhaust ran to close to the floor pan ?
Plus the transmission itself will put off heat once up to operating temp.
A decent heat insulation on the inner firewall and floor then pad and carpet will help alot.
You can run a no clutch 7 blade 18" steel fan.
Add what spacer you need to get to your correct clearance.
There are mopar aluminum spacers from 1" to 3"
Those fans move alot of air, it's what I use.
Do you give up a couple horses loosing the clutch ? Yes , but compared to the alternator loading...