Putting an engine in my mk3 - best approach?

[MikeG]

So I made the deal today - $600 for the car, transmission, an old engine that was originally in the car, which is in a pretty bad state of disrepair, a half-rusted block that looks in great condition, and a head that the previous owner was kind of working on.

My general plan of attack is to tear down and clean the individual parts of the head, inspecting everything and figuring out what I'm missing, and then put the whole engine together. The old engine can be used for extra parts, I guess. And I'm going to try and de-rust that block, because I'd really prefer not to have to get another.