My neighbor was a Lieutenant with the Cedar Rapids Police Department and on his days off, he did landscaping. He babied this thing as he does with all of his stuff. He parked it in his machine shed when he retired from CRPD and also stopped his landscaping as well. Where he parked it, that's where it sat until we moved it. Since we are here in Iowa and have some pretty wicked humidity, that is likely what caused the flywheel to get like that.
I just got the remaining ATF/xylene mix out of cylinders (they were now about 2/3 full each) and drained the pan. So, a fair amount moved past the rings. So, I'm leaning more towards flywheel now. Put a fresh filter on and oil in it. Will talk to repair guy this week on my days off.