Greg,
You have a lot of good info and advice about freeing it up, and dealing with that vintage NVA, but no one seem to recall that you also asked about break-in. Ideally - to me anyway - do it on a test bench. (if anything is going wrong, you can pinch - or pull - off the fuel line and at least stop it from possible suicide. Here's how I did it...
Fox used to make at least a short run before packing one for sale. It was done with a flywheel and Superfuel - 29% castor! Castor can dry over time; that may be why yours wouldn't turn over. The suggestions you got work well!
For break-in, use a light prop, 10-4 or 9-4 well balanced, for first runs, and fuel with plenty of castor. I prefer a few short runs slobbering rich to polish-in the rod bearings. Next, short runs a bit leaner. After each, check how hot the engine is. Let it cool to the touch before next runs. Run rich, but easing toward 2-cycle over about ten short runs, run it leaner but not full 2-cycle over the next several. If it isn't getting VERY hot and holds setting nicely continue, but pinch the fuel line two or three times a minute to help mate the piston and cylinder.
Figure taking total running time of about a half hour so far... If it feels nice and loose and quickly drops back to the needle setting when you unpinch the fuel line, do longer runs until you can run it set just below 2-cycle for at least 3 or 4 minutes at a time. Keep checking for overheating - of course, it will be too hot to touch comfortably, but should not be seizing or loading up.
Somewhere in this phase, switch to a light 10-6. If all goes well over at least several runs, it should be safe to fly it in the rest of the way. It may keep getting better over the next hour. You don't want to run it screaming! That's too hot, and you can't shut it off when it's 60' away going ~50 MPH...
By this time it should be safe to go to a more available fuel - one with at least 25% total oil, mostly (if not all) castor. That should be the minimum oil %. Some synthetic (detergent) oil% is okay, but castor mainly!.
On every new engine, I loosen the head bolts a bit - just enough that the bolts turn freely.. Check how freely the engine turns over. If that feels good, turn bolts in until they just touch evenly. From there, I 'torque' them down in a triangular rotation - prevents distortions. How? Call the front bolt 12 0'clock. Take a fraction of a turn in. The next bolt is at the 4 o'clock position, then the next at 8 o'clock. Then cross over the head to the 2 o'clock , then 6 o'clock, then 10 o'clock. Continue. The sequence 'walks' around the head. After each 6 bolt circuit, check for binds or dragging, so it turns about as freely as when they were loose. Make several passes in the rotation until you have them very tight, evenly - ideally with the same free turning. If a bind comes up, back off at least one 6 bolt cycle, until again free, then resume.
When you first run the engine, the bolts will loosen a bit. Retighten them after first run, same torquing sequence. Check and retighten after about 5 more runs. Maybe not needed, but good practice. Further occasional checks through the benching runs? Yup.
BTW, Fox and British PAW 2-hole spraybars are cross-drilled slightly off dead center, on purpose. They are to be installed so that neither jet hole is visible from the venturii entrance side: the holes are "just downwind" of the spraybar max diameter in the airstream. ...