Ok guys, Just got done getting all the pictures uploaded to Flickr, so here's the link: Honda Dream - a set on Flickr
There's a ton of pictures in there, and from what I can see the engine looks clean, and the frame looks good. The crack in the "frame" is actually on the rear fender, so I think it's well away from any of the structural support areas. My Grandpa had the manual and several other books to go with it, not sure what they are exactly as mom didn't elaborate. she did get a shot of the stamp on the frame, and it's a CA78.
I think my Grandpa really did want to rebuild this one (he always had a project going, most never were finished), as he had it completely disassembled and has some newer parts, like two gas tanks (one nice, the other beat up) and a spare rear wheel, and mom says there may be another engine. There are a bunch of parts in boxes, and he wrote page references for where they went on a bunch of them (you can see a few tagged in the photos).
So, just in case anyone is interested, there's as much info as I have on her, like I said the only stipulation on the bike is that it goes to someone who's going to rebuild it and mom wants to see it running. Heck if you're close to SoCal she'd probably like to go on a ride with the person who does rebuild it.
Here are a couple of the pictures:
frame, tank, fenders.
Frame, engine, headers, and tank.
And the crack!