You may not believe this, but I have seen worse. It is possible to clean that mess without removing the engine. As I mentioned, the cooling system can be flushed with dishwashing soap. CLR is good too. Letting it sit for a good while will dissolve that rust but, again, will ruin the water pump and probably the radiator too. Sometimes I rig the radiator hoses in a circle, sidestepping the radiator altogether. Leave the thermostat out while doing this. But you need the engine running first. The oil system is easier. I remove the distributor, and insert an oil pump priming tool. They are available commercially but I make one by cutting apart an old distributor. You take a 1/2" drill. and spin the oil pump without starting the engine. I drain the oil, and fill the oil pan with solvent. #2 heating oil [diesel fuel] is a great solvent as it won't explode. Spin the pump several times a day, let it sit, and watch as all the crud gets loosened and flushed out. Rotate the engine now and then with a breaker bar so all the oil passages in the crank and lifters see solvent. The oil filter will probably need changing a few times too. After a week or so you can drain out the filthy solvent and do it again. You won't believe the crap that comes out. Once you are happy with the condition of the engine, drain and fill with the cheapest oil you can get. Use that to flush out the solvent. Then you can drain that and fill with your favorite oil and a fresh filter for a test run. Start the engine, time it, adjust the idle, and check your oil pressure, listen for expensive noises, and shut it down before it gets hot. Now you can start cleaning the coolant passages. Lots of work, but much less than yanking an engine.