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Remove the carburetor and reed plate and peek inside the crankcase. If you see rust on the crank and rods it is a lost cause. The lower main bearing seal on those was a weak point, allowing water to enter the crankcase and wreck the bearings.
take the head off and try to see if you can move the pistons at all--sometimes the rod is frozen to the crank--soaking in diesel fuel works better than blaster
Simple home brewed Electrolysis can be your frozen small engine friend followed by some kroil penatrating oil and time, you just need to make a good connection to the cylinder wall and set back and watch the action, Safty first...do it outside and not indoors!
While you have the carb and reed valve off you will have access to the crank. I've managed to free-up a few engines by the following method: Take a teflon pin/cylinder (and inch or two in diameter) to use as a punch. Place it on the the crankshaft counter weight (heavy part of the crank) and tap it with a hammer. Probably a little bit harder than a tap but don't be a caveman. I soaked a two cylinder Firestone power head for over a year with no luck. The hammer and punch method worked. Good luck!