Join Date: Feb 2002
Location: Disposed of old tat. Fun bags for me now!
Car: Other Manufacturer
The information you have is "very lightly" correct IMO.
The V6 is pretty strong and suffers much less than the K4. Saying this though, a fair few V6's seem to fail in the Land Rovers, where they don't in the Rover and MG applications.
If the engine has been overheated, the liners can move. Upwards into the head and sometimes downwards into the block. If this happens, the engine is scrap.
If the car has been running fine and has started doing this and not been badly overheated, I would attempt a repair.
It is imperitive that when the cylinder heads are removed, attention to detail is paramount. Several checks need to be made to the heads and the liners to make sure everything is good and you are not wasting your time and money putting it back together for it to fail again soon.
Liner checks need to be stand proud, difference between adjacent liners, etc.
You need to find a good mechanic, certainly not necessarily a main dealer.
Engine transplant I can't advise you on as I don't know whether the gearbox, etc is the same. You don't want to put the 1.8 in as that will be from the frying pan into the fire. The diesel lump would be the best bet but my gut feeling, without knowing much about the installation would be that it would be too complex and therefore too costly.