Just an update on the outcome of this incident. UPS wanted me to release the damaged item to them and pay me $100.00 and be done with it. Not very fair when I paid considerably more than that and they would have taken the item and thrown it away, UPS sucks. I called Cabin Fever auctions and they put me in touch with the company that insures their shipments. The response was quick, professional and they settled the claim fairly so that I can now repair the item without any financial loss. Cabin fever came through, UPS didn't. I am in the process of repairing the engine and I'll post pictures when its done.
I'll continue to bid on Cabin Fever auctions and I'll avoid UPS ( Universally Poor Service) whenever I can.