I thought I was better than this.
 

You picked her up, Marine.

You owe her a dance, or pay her and send her home.

Looks above minimum insert mark + ridden by a heavy weight. If it fits you with the post an inch or two lower, should be ok to ride. Don

If it's stuck, that could have been done in previous strong arm attempts to get it unstuck. Don

Bummer, that's a sweet frame. I'd try to save it if no real money was involved. Might not get it perfect, but close enough to ride and enjoy. :)

I hate it when I don't see something big and obvious like that until I get it home. Sometimes we're blinded by lust. Hope it works out in your favor one way or another. :)

Maybe its just been working out? I once wheeled home a Raleigh Gran Prix, about a mile and a half, that had been put out for trash not seeing until I got home the telltale twin paint flake and rust spots behind the head tube of a front ender, I did harvest some decent SunTour parts off that bike though.

Ironman models typically used a 27.0mm post. My fix would be to install a proper diameter ATB post that extends further into the seat tube, past the damaged area. The post will be supported by the undamaged section of seat tube and can still be held in place by the cinch bolt.

I dunno, Shawn. You've got enough really nice bikes to not to have to waste your time messing around with damaged goods.

Give it away or recycle it. Or build it up with your lowliest parts and sell it cheap, letting the buyer know exactly what the deal is.

That could probably be fixed by putting a proper sized seatpost in to act as a mandrel, then some careful work with a sheet metal dolly or flat faced hammer. You should be able to get it back down pretty close to level, then touch up the paint damage. (Frame blocks would be better, but there isnt nearly enough clearance there.) It won't be perfect, but should be a huge improvement.

I was thinking of frame blocks, but that is probably better since there is the lug, and the area isn't easy to get to.

Is the seat stay cap good? If there is more damage, then perhaps one would be better off stripping it.

Definitely worthy of a save! If not time well spent for you, then for someone else for sure. I always enjoy the orphans and the dogs and getting them back on the road. There is really something to taking what others de-value and finding worth in it.

Do you see any impact marks on the cradle section of the post? I'd guess a ham-fisted attempt to either insert or remove the post caused that damage. I like cdmurphy's idea to put in a proper seat post and reform the tube. At least the paint in that area is white and easy to touch up (compared to the near-impossible-to-replicate smoked purple haze section).

Good luck with the project!

I continue to make mistakes as well, just not as often.....

Install a seatpost of the proper size, place a wood block on the bulged area, and hammer on the block to push the bulge back into place.

I've fixed a few that were worse just this way but it makes a big difference if the steel is warm. I don't mean take out a torch, but get it at least warm to the touch or as warm as you dare without melting the paint.
Never try and work cold steel. There will be a certain amount of stretch to the metal too that will never come out without a lot more heat, most likely more heat than the paint or nearby brazing will withstand but you should be able
to make that look at least passable. I've gone so far as to turn down wooden dowels to fit since wood doesn't conduct heat away as fast and is not as likely to get stuck, and if it does, a simple drill bit can remove it.

That's exactly what I would do...

I think it's something underneath that post trying to get out. Run away!

Let it go down fighting, at least. I whited out the rest of my post.