rotational movement on the flywheel is normal, in and out movement anything more that a small amount is a problem.
Whats the old engine worth then? was gonna stick on the classifieds, don't know whats wrong apart from low compression ?
Dont think there is me dads been diing it sure he would of noticed. Checked pistons and end float they seem ok. Did notice spot weld on flywheel tho so maybe its from there?
Only one way to find out. If it turns and you feel compression 4 times in 2 rotations and it has no end float why not?