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I always say do not order ANY parts until AFTER the tear down and machine shop has inspected the parts.

If the engine will not turn one full revolution then you have some form of mechanical failure. Could be broken piston with piece hitting the cylinder head, broken connecting rod or even a broken crankshaft. Your cheapest option would to find (try) a running used engine that passes compression test and hot idle oil pressure specs.

You can't compare this engine to medium, let alone heavy duty, diesel engines. The in frame overhauls you mention many times includes new cylinder liners and pistons. They are wet sleeved engines so they don't get bored out.

A reman 6.5 with a warranty for $4k isn't ridiculous considering how hard it is to find good buildable cores. A brand new GEP Optimizer 6500 is probably around $8k these days.
 
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