Alrighty. I got the blown motor out of the TB. I unbolted it between the transfer case adapter plate and the transmission and pulled the motor and the tranny as one piece. It's actually very easy. Just put a jack up under the tail-end of the transfer case to hold it up from tilting after breaking them loose.
Also, here I've included pictures of the same procedure done to the transmission and transfer case out of the parts truck just in case somebody wants to see more of it.
I took the oilpan off of the blown motor and found a broken rod hanging down on cyl 1, so theres our problem. I started swapping all the little metal clips and retainers from the blown engine over to the soon-to-be-used engine to replace all the rusty parts. I'm also ordering all sorts of sensors to replace whats on it now.
I cleaned out the oilpan for the old motor and got it ready to be installed on the new motor (I cracked the new motors pan trying to pry the front diff off of it). I took the oil pickup off and washed it out real good in a bowl of diesel before putting it pack on. Bought some ACDelco engine sealant and put a bead on the engine block and reinstalled the pan.
Then I took the valve cover off of the blown motor (again, I screwed up the other one trying to pull the engine out the wrong way), and removed all of the old gaskets and scrubbed it down with engine degreaser before giving it all-new gaskets. Rim gasket, coil gaskets, and the little gasket pieces that go on all of the forty-billion bolts.
And that concludes yesterdays work.