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I once damaged a piston (valves smacked it) and continued to use the car for a long time. I took a dremel, and smoothed out all the sharp edges from each of the valve impressions that were left in the piston. So that it had no ridges, even though there was an indentation. The big thing is you need to clean up any rough/sharp edges. This wasn't a Z, but it was a boosted application. Worked more than fine. As long as you're not expecting this thing to perform (as in, you're just boosting like stock) - not 20+ psi, then IMO you'll be able to use the car just fine. I think if you shot a picture then everyone might have a better idea of the exact damage you're talking about. If it is crazy bad, then I'd just rebuild the short block. Do you know if the rods are bent? Like all the pistons come up straight and flush despite being thrashed? As for used engines. I've bought 2 different engines from wreckers (both different vehicles) and dropped them in to my cars. Guess what, both of them started up right away after I installed them, and both of them have been in the cars ever since, and both of them still run and have never had any service or repair other than oil changes! I wouldn't be afraid of buying a used engine. Especially if it is from an auto wrecker. You'll pay more, but it will probably run better than some random dude selling an engine.
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