Like I said;
Its not really necessary, maybe we do it to look good in photos on the internet and get people to make comments.......

Its worked so far!

WOW,
The comments here have covered nearly every aspect of blocks. It's just for faster oil retrun to the sump.
Seasoned blocks (used) have been through so many thermal cycles (warmed up, and cooled down) that all the internal stresses (from the casting process have been relieved. (Race blocks have this done after being cast, by being heated up to within a koowee of melting. And being held there for a time, then allowed to cool slowly.)
As opposed to seasoning outdoors. Where (In times of old) motors would be left out in the open (In detroit) after they were cast. in the cold winter. We now now that prolonged exposure to cold tempratures, (Or shorter exposue to really cold tempratures) realigns the molecules in metals. From Austinite, to Martinsite. (or vise versa, I can't rememeber which way it goes) This process is know as crygenic anealing. They stopped doing it donkeys years ago in detroit. It makes the metal hard wearing, but without the embrittlement of heat anealing.

I dont know about pissing on a block though.

As A14force said...

Its just a Dulux primer sealer.

Why did you paint it on the inside?
I was always under the impretion that a engine must never be painted on the inside where it can flake of and mix with fluids.

We have always painted our blocks. Some people do it because it might allow the oil to drain back quicker (similar to polishing) . The main reason we do it is to seal the block, in case any of the loose casting decides to let go. Its not really necessary, maybe we do it to look good in photos on the internet and get people to make comments.......

I was under the impression that if could be painted with a specific paint and this would improve water flow, cooling characteristics and also prevent corrosion and alike, however the paint is a specific type. As 1200GXman said I would be worried of it flaking off and blocking water flow, especially in tight areas like the radiator. I think that I have even read of an occurance of this happening and causing huge problems...

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I don't think it will happen with a "seasoned" block. I did some research about "seasoned" vs "new" engines to use for performance upgrading.
Apparently the definition of a "seasoned" block or engine is that it is a used engine that have twisted and heated up and cooled down many times to finally find a point where it will stop.These engines are preferred by performance engine builders as they apparently are better to use than building up a fresh out of the box engine.
As far as i know all A series engines have been used previously so I doubt it will have casting still coming off.
Nothing that a proper cleaning of the inside before assembly should'nt cure.
Just my opinion as I am still not comfortable with painting the inside of a engine.

Yeh apparently BMW racing team in the DDC or whatever it is use a really old block(mileage) then stick it in a paddok and get the techs to piss on it I donno i heard it somewhere, i think my boss.

Cooling systems dont corrode if you use good coolant and look after it. Toyota genuine is one of the best ive found.

beattie i dunno if that story is true but that idea is used to in a way treat cast iron as u cant heat treat cast iron you leave things like precision angle plates ( engineering/machining 90 machined and ground) you leave these out in the weather and rain then regrind em and the surface is tougher than normal cast iron.

beattie i have heard that to but it was with some early mg engines that where left out in a paddick when they stopped producing during the world war they eventually remachined them to a useable state and they are tough as apparently

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Glyptal paint
I think this stuff is normally used for electrical windings.
Also, I think if this paint flaked it would get in your oil not your water.

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haha, yeah, I didnt even think about 'what part' of the engine was painted... I just thought hmmm water goes around in there... lol, but its obvious that its oil in this case...