Sounds like it had a sudden stoppage of the engine. Not an easy repair if it still lodged in the camshaft somewhere. Your looking at replacement of the cam, lifters, and pushrods at minimum. I wouldn't do it unless it was dirt cheap and the truck was in good shape.
truck was a really rough. it was $700 but as rough as it is i dont think it would be a money maker. motor wasnt locked up but crankcase was FULL of diesel and had been sitting that way for 2 years. im gonna pass. gotta lead on another one im gonna check out tommarow if i can scrape up some more cash. next one on the list is a 95 ext cab lwb 7.3 auto 2wd e4od. good shape, said tranny takes to long to shift?
went and looked at the 95. gonna pick it up sometime this week. tranny done decent. acts a little funny. maybe thats the way stock e4od's act? only owned one with an earlier jasper tranny. my buddys 97 acts almost the same way. the thing ran like a raped ape. looked at a cummins while i was there. almost bought it without even driving the psd but after driving the psd, it had alot more power then the cummins. now off to find some cheap mods. already has some kind of exhaust on it, sounds good