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Jason,
While I'm new to Porsche engines, I remember my first engine like it was yesterday (who doesn't?): you CAN do it yourself and it can be terrific fun and (relatively) inexpensive, but here are a ten REALLY important points:
1. Don't take short-cuts (at least, not as a novice)
2. Have someone you know, who knows engines (pref. Porsches) be available for ??s
3. Don't scrimp when you need to spend
4. Don't spend when you don't have to
5. Buy the right tools
6. Buy good tools
7. Borrow (if anyone will let you) anything you'll never use again
8. Take REALLY good notes as you go (at least the first time).
9. Budget for a minimum of 50% more cost (and 100% more time) than you expect.
10. Expect to screw something up and have to re-do it.
My first engine (5 or 6 vehicles ago) was a shot '86 civic engine (broken timing belt, spalled cam). On-the-cheap rebuild, no extraneous expenses, but bought about 60% of my good tools then: $400 in parts, $800 in tools.
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Make choices consistent with your priorities.
1969 911T targa
basketcase
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