At first glance this $100 5.0 looked to be in decent shape

I pull the upper manifold off and there is "chocolate milk" in the #8 runner

So I soak up as much as I can before removing the lower. I get the lower off and there is dirt in the lifter valley. I see light coming into the lifter valley from the front and realize that the dirt came from the timing cover being off.
So I pull the passenger valve cover and the head looks clean

I pull the head and BAM! more "chocolate milk" in #2. And then I notice #3 looks to be sticking out of the hole. I wipe it with a rag and its all carbon but the piston is dead even with the deck. Is it supposed to be like that? I figured the piston should sit in the hole a little bit
I can see it now, it will need an entire rebuild

I'm gonna go pull the driver side head and see whats up. I'll keep you guys informed.