Definitely looks like its had something corrosive in it.
I'm sure someone else will confirm, but I've a feeling the bores are hard chromed so may be why there's no corrosion on them?
Even if it all cleans up OK you'd be wanting to have a close inspection of the conrods and pistons in case it was running when the stuff got in there....
Make sure you blank up the connections on the injection pump too.
Steve
1985 County - Isuzu 4bd1 with HX30W turbo, LT95, 255/85-16 KM2's
1988 120 with rust and potential
1999 300tdi 130 single cab - "stock as bro"
2003 D2a Td5 - the boss's daily drive
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