Well the Wrecking Yard gave me the OK for pulling the head to see what else I find. (I didn't want to void the warranty.) The head looks to be in pretty good condition except #1 cylinder is different in appearance.

Picture is HighRes - so please click on this link.....
http://tellico.off-road.com/wwwthreads_uploads/1448863-IM000711.JPG

And here is what the block looks like! UGH...

Picture is HighRes - so please click on this link.....
http://tellico.off-road.com/wwwthreads_uploads/1448870-IM000700a.JPG

All the exhaust side water jackets are really deformed and were probably leaking or would have leaked in the very near future.

#1 cylinder metal comression ring has a small gap in it and two badly deformed sections. I would consider this a blown headgasket! So that makes two engines now with a BHG!!!! #6 also is starting to deform and is kinda egg shaped.

On top of most of the pistons is this weird red fluid. kinda looks like red anti freeze but has a flameable smell to it like its some type of cleaner solution or something.

Also on top of most of the pistons and the sides of the cylinder walls is this loose hard debris stuff. Could just be carbon build up but I never seen carbon on the walls before. and just turning the engine of by hand seems like this crap would get stuck in the rings to me and start scaring the cylinder walls.



There is also green corrosion on the water ports on the intake side of the block. looking down in the water ports in the block I can also see lots more of that dark brown muddy crap inside the block!

To me this looks like a Core motor that should only be used for a rebuild and no way would it last 12 months or 12,000 miles!

So anyways, I'm not happy with the condition of this motor at all! I'm going to try to get another one from the wrecking yard. I really don't think I'm asking for too much.... Just a motor that is in good working order with a warrantee! And hopefully a motor that can last through the warrantee and more....