I will be working on this project this weekend. Looks like lots of little leaks and may not be the pan as some have pointed out when looking for leaks. If anyone needs any pictures of anything let me know I will shoot and post them as I go. I did read where people discussed cleaning up the crap on the block. A couple of cleaning tips:
WD 40, soak, rinse with Simple Green and water
100 Cycle cleaner
My favorite, brake cleaner, cut through everything and dries fast.
Car is e36 but some of the info might be relevant.