what bothers me about that is the fact it dies.. could be a spun crank or rod bearing. cold there is enough clearance to let it run normally but as the engine warms up and the metal parts expand it will actually cause the engine to freeze up due to friction... had the identical problem with a buddy's small block chevy...
personally that bronco II was one of the worst ford vehicle they ever made... for creating a 4x4 project you would do better with a full size bronco or a jeep cherokee or something like that ... they can also be had in running condition for that money
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DJ Phoenix (my modded) Hi-1200/240Tow/75FS/80DD/100/140SS +Minotaur
ASE Master Auto Technician 
2001 Ford Excursion 7.3 4x4
Projects. 1970's Hustler and Max II Amphibious ATV's
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