I dont know if the damage would have been bad or not.
But I cant see from the pics what damage they are talking about. And if its Gemballa why dont they fix it and sell it as a perfect engine?
(but hey, Im not an expert by any means!)
I dont understand why it was an insurance write off though? What kind of policy covers engine failure, and if it was cosmetic why didnt the policy cover it?
And I guess the engine is only of use if you have a 996.
AFAIK it wont fit anything else, at least not without major work.
Alex.