He said that the engine was mounted "plugs up" with a home made dry sump system that allowed the engine to run without oil pressure on start up until the system primed itself. The results was that all the bearings in the engine were "wiped out" completely (didn't size up really just stopped).

Geeorges,

 It must have been a really bad "dry sump." Since the engine seized there as a bad problem. This is a very unusual failure mode for a rotary, that has actually started. A typical dry sump system uses a tank remote from the engine that would always have oil above the pressure pump. I would also suggest that unless you are real familiar with the engine to avoid plugs up installation. With all deference to Ed A, most of us aren't ready to set up that plumbing. I am not claiming that it won't work, Ed's obviously does, but you are responsible for the configuration, rather than the original engines engineers. Some people aren't that mechanically capable.

Bill Jepson