Well the engine is totally stripped now. The intermediate bearings are showing copper, have to be replaced. Have sent the heads to a specialist in Australia to be rebuilt. Cylinders are Alusil as suspected. No wear evident by measurement or ring grooves etc and certainly within tolerance. Piston ring end gap is .026 inch on number one compression ring (limit is .031) and .027 inch on number 2 compression ring (limit .039). I have a real delema here. Do I re-ring and take the chance it works or do I reuse the existing nearly worn out rings. Measurement of main and rod journals show they are all in tolerance and journals look excellent. This car has obviously had regular servicing.
Orders for replacement parts has now been replaced. Now to clean and clean everything as this forum talks about. I am now at 40 hours approx. spent to date, excluding reading documenting etc