I'm just getting into this new Hemi stuff, I'm wanting to build one for my street rod. I have a core 5.7 I can get for $500, problem is, it appears to be locked up and a nasty oil film in the intake.

Initially I wasn't too concerned since was a core engine, but, the more I learn that these are bad about seats dropping.

Question is, should I just walk away from this one?

Tear it apart and see what's going on... I've never personally saw one drop a valve, mostly spun rod bearings.

late 04-06 there was a seat issue, it was a supplier small player it's one of those 1 out of 10k deals but it gets talked up more and more every year. over on the LX forum it's like a death nail item to some low info buyers.

I wouldn't walk away, but I would push the issue of wanting to see it with the top end removed, if the Valve broke it can tear up a Cylinder wall pretty good....don't fear having a sleeve put in one of these.

I bought 2 locked up 5.7s and both dropped seats on the same cylinder. Blocks were fine but the heads were junk.
I wouldn't buy it for %500 if you have to sleeve it.

Not worth $500, I have bought ones with broken rods and no holes in the block for that much. I have seen one with dropped seats (owner severely overheated it) and one with a spun rod bearing(looked like they never changed the oil, severly sludged), I have seen tons o broken rods in the 03-08 5.7s, I would rather buy one of those and stick another rod in it, just be sure there is no hole in the block, they are almost always visable from the outside and only about 1/2 poke through the block, most of them still rotate.

Got to go with this one.
Grab some tools and have at it. You may just be able to have a decent block for free.
Spun rod or messed up head does not equal 500.00

The big question is what year is the engine? 09 or newer, the heads a lone are worth 500