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Inside would be better, warm and dry, out side you have condensation to worry about , especially if it is on a concrete floor .

I use a lot of WD- 40 to clean and condition the outside of my engines, I also use it to clean the inside grime and old oil too.
but I tend to drench the gears,bearings and other moving metal parts with Rotella motor oil mixed with some Marvels Mystery oil if it is going to sit for a while.
Make sure you replace all those rubber O rings while you are in there.
Oil up your cylinder walls too.

Sta-bil fogging oil seems like a good option. It is designed to cling. It's stated purpose is to shoot into cylinders (remove spark plugs and fire it in there) to protect the cylinder walls during storage. I suspect BlueJ58's method serves him well, so I'm not poo-pooing that approach. Marvel is a penetrating oil and I use the stuff all the time. It is thinner and I wonder about how well it will cling to all the surfaces.

Now the engine is stored inside heated room, so will not add some oil now.
When I rebuild the engine I want to move it outside soonest possible. My plan was to-do that soon after minus celsius degreehas stopped for these winter.
Then it will be stored into the frame for some weeks before I start it up... these properly the critical phase...

I was thinking fill oil on and use some oil when I mount the block / pistonts / top, so its a oil film around inside the engine.....

You absolutely should coat the cylinder walls and the pistons with oil prior to assembly. Be generous in your application of oil.

ajsfirehawk wrote: You absolutely should coat the cylinder walls and the pistons with oil prior to assembly. Be generous in your application of oil.

Thank you, I see some says I will not use to much, the piston ring will not "burn in" then ?

The key is everything should be wet with oil. The cylinder walls, the rings and the piston skirts. "Dripping excess" is not needed. I've not heard of burning rings due to too much oil in the cylinder. Others should weigh in on that one.

ajsfirehawk wrote: I suspect BlueJ58's method serves him well, so I'm not poo-pooing that approach. Marvel is a penetrating oil and I use the stuff all the time. It is thinner and I wonder about how well it will cling to all the surfaces.

I use Marvel's because they claim "it breaks down and removes harmful deposits of sludge and carbon"
I add a shot to a squirt bottle filled with standard Rotella 15-40 heavy duty diesel motor oil and hit all the moving parts in the bottom end of the engine several times during the course of a rebuild turning the crank every time to help flush things out.
This is a spare 77 kz1015cc engine that I am cleaning up right now , it only has about 32,000 on it and was sitting for around 20 years.
there was oil in it but the pan had a thick layer of sludge on it, luckily the sump screen was clean so I don't think it was pumped through the engine.

The pan

Wow, nasty looking pan. I'm a Marvel Mystery Oil fan as I said. It is targeted at penetrating so what you are doing with it makes perfects sense to me. Nice looking work lined out there Bluej58. I love the engine stand shown. Purchased or one you made?

No eBay APP ID and/or Cert ID defined in Kunena configurationI found it new for around 200 bucks,

I'm seeing them for 185.00

It does the trick but I had to glue lead pipe into the two tubes that the arms clamp on to because the the walls would crush and the arms would come loose.
All better now.