Hi!
I am getting to this post a little on the late side (traveling a bit). It sounds like the teardown is what will tell you what is needed. Sorry it had to be like that,. When it comes to rebuilding, or even partially rebuilding, an engine I have one main thought in mind - "
invest once, do not spend twice." That works for most things in fact. In the case of repairing or rebuilding an engine I would suggest a few things. First, I replace the oem style excuse for oil seals (they are more like upside down umbrella style oil deflectors) with a real valve seal, like a Perfect Circle style seal. Also, I would have the valve guides bronze walled. I would also replace the valves with one piece valves, as opposed to the factory two piece valves that are friction welded together. Make certain the spring height and pressure is correct for your cam and lifters. I have decided that on all future builds I am going to use a hydraulic lifter cam and lifter kit. Make certain at least your exhaust valve seats are hardened steel. I avoid the own style nylon/plastic tipped camshaft gears, and prefer double roller timing chain with all steel gears - always use a very high quality set of parts there for sure. Unless you are racing the car on a track porting and polishing does little more than drain your money and give you bragging rights. Select aan engine builder that has experience with these older 351C engines.
I took note that several folks advised a vacuum test of an EGR valve ought not show any leaks. In general that is correct, especially for the earlier EGR valves. But, in the 80s Ford began to use EGR valves that were intended to have some (very slow) bleed-off when vacuum was applied, which was intentional by design. That bit me as a tech once, and only once, on a warranty job I had back in the early 80s.
I have found a lot of folks who began to mess around with those emission control systems and the vacuum line routing could find themselves in trouble in a hurry. And, I get why. Until 1972 the factory manuals did a poor job of providing useful info on vacuum routing, much less emission control systems. In 1973 the Forel shop manual for Mustang (and Cougar) finally provided some really good into in Volume 6 of their shop manual. But, as good as it is they left out the 351 4v engine vacuum line calibrations.
As for pre-1973 Mustang Barn took the time to collect 67-72 vacuum routing and offers that info on a no fee basis. With their knowledge and permission I consolidated all of their schematics into a single PDF file, grouped by year and sorted by engine. Attached are the 67-72 vacuum schematics, a snippet for Volume 6 of the 1973 Forel Shop Manual (I added the two missing 351 4V calibrations to my copy of Volume 6), and the two 351 4v calibrations that were missing from the 1973 shop manual for anyone who ma want or need that info. Also, following is the link for the Forel Publications page where you can navigate to the year Mustang you need manuals for, then for a very reasonable price you can purchase and download lots of great manuals:
https://www.forelpublishing.com/clickbank/index.html
Once you get your engine back in running I hope you post a followup.