d16z6 help needed

i just got a d16z6 friom a guy a few months back while i was in iraq, i tookt eh oil pan off the negine the other day to inspect the insides and everything seemed cool, the engine still had/s some oil in it but it is milky so i know that it blew the head gasket. my main problem is that i turn the crankshaft pulley and nothing happens but when i hook up a breaker bar to the crankshaft, it turns over (quite a good amount of compression I might add) is there something up with the crankshaft or is the problem the crankshaft pulley, i am wanting to tear this engine down and rebuild it sometime this winter and try to find a donor car to stck it in. thanks for the help


EDIT: I just removed the spark plugs and there is rust all around them, this leads me to believe that the engine was stored outside under a tarp or something because ther rest of the engine shows no signs of rust or anything, the timing belt is intact as is the vtec solenoid, but most of everything else is missing.