at 170K km decided it was time to blow the head gasket at cylinder #4.
That's where mine went too... at about 90K miles, which I think is roughly equivalent to 170K Km ...
I have yet to remove the engine for a rebuild and am wondering if the #4 cylinder on these engines are prone to head cracks?
I doubt that you will gain anything by rebuilding the entire engine. Did you burn any oil prior to the gasket failure ? After I did the head on my engine, my compression was 173 pounds on all 4 cylinders... in fact, you could still see some evidence of the "cross-hatch" marks from the cylinder honing. There was virtually NO ridge at the top of the cylinders. No, save yer money on a complete rebuild.
Look on the backside of the head with a mirror, (or if it's apart, just look at it). It should be embossed with 4ZE1 , and a number. If you have a 3, 4, or 5 casting, you probably don't have any cracks, but it would be a good idea to have the head re-worked. A valve job, and "flattened". If you've got a 1 or 2 casting, you might consider a new head by AMC or Pro-Topline.
There are two "dowel pins" that locate the head on the block, and there have been reports that these may be partially responsible for this type of failure. It seems that in some cases, either the pin is too long, or the relief cut in the head and/or block are too shallow to allow the head to fully seat on the gasket. In other words, they hold the head up above the block deck just enough to cause a failure after quite a few miles.
As a precaution, shorten them dowel pins down a bit before putting it back together!
Do NOT use an el cheapo head gasket! Use only OEM or Fel-Pro product. Jerry Lemond
jlemond@bellsouth.net can supply the OEM at a good price.
The head is removed with the intake manifold attached. You can also leave the exhaust manifold on, but it is possible to un-bolt the exhaust mani and wire it back far enough to get the head off.
Search the archives for a post by "Rufus The Ram" who did a write-up a year or so ago. It gives a "step by step" on pulling the head.
Good Luck!