I just got a new lq block that was sitting around for a short time and it has some flash rust near the lifter holes and on the top of the deck. Is it ok to use some very fine steel wool to get it off? And should I worry about the lifter rust? Its going ti be used for a 408 if it makes any difference.

 

You will be fine. Clean it up like you are thinking. I just got a fresh machined block in and covered all the iron with wd40 to prevent that light surface rust.

 

I like to use wd-40 and scotch brite pads just make sure you get all the debris left behind cleaned out.

If it was me i would try to clean the surface rust out of the lifter bores.