Chris, I have seen quite a few C113's cracked in that area, and to the same extent. I have also see successful re-use of those cracked blocks and I have seen failures.
So, if you decide to give it a try, here are things to consider. These engines are thermo siphon. No pressure from the cooling system. These engines are low compression and low RPM. I believe it was Gene's comment that that area is low stress, and I agree. Also, these are sleeved engines, another plus.
The absolute best route is a good used block. However, if that doesn't work out, you can certainly try to use this one. The only potential waste of $$$ is the head gasket and your time.
Interesting thought. I have taken heads off of C113 engines to do valve jobs and found the block cracked in the same area as yours. Aside from needing a valve job, the engines ran fine, ie. no oil in coolant, and no coolant in oil. If I hadn't pulled the head, I would never have know it was cracked. Long story short: you have to decide, because "your mileage may vary"! :wink:
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