Follow-up after I pulled the head. After about 120K miles the bores STILL had the cross hatch marks from the machining of the block - this could have been a 200 to 250K mile motor!

Engine bore is much better than expected - a few shallow gouges about .005 deep.

Piston is toast: cracked, perforated by the valve on edge and generally abused.

Head is toast: valve head (stem broken off and who knows where) is imbedded in the head.

I took some quick pictures but am uncertain how to upload them without first posting them to a picture hosting site and linking them here.

Now I have to decide on if I want to do a quick and dirty repair - trying to get another 50K out of the existing motor or upgrade to a 2.6L. Is there a signigant performance difference between the 2.3 & the 2.6?