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I still see no evidence of a slipped sleeve. The tops of the cylinders do look like crap and so do the bore linings, but I see no failure here. I am quite confident in saying that the air/oil separator was the source of your "genie".
Kudos to you though for taking it apart and seeing what makes it tick.
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Dan
2002 996 C4 Cab w/ Jake Raby 4.0
2024 Tacoma TRD Offroad 4x4
2003 Range Rover HSE
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