Welcome to the site, I wish it were under better circumstances.
First thing that comes into my mind are mismatched cam gear / distributor gear material causing those broken teeth as Timmy said. That means metal floating around in that engine and more specifically bearings.
This could end up being a big job for sure. If you choose to tackle it yourself this forum contains a wealth of information in its archives as well as a community of very knowledgeable fellow bronco owners who are always willing to lend some advice or even a hand sometimes.
In my opinion getting your hands dirty is the best way to learn this kind of stuff but keep in mind that with something as involved as an engine overhaul there are going to be a lot of tools needed if you don't already have a well equipped toolbox.
But hey, whatever you decide on I'm sure this will be a great opportunity to familiarize yourself with that nice looking EB you've got there.
-Seth
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