Scratches are down to turbo retaining nut and washer coming off, and removing all the compressor vanes, which subsequently went through the engine. Interestingly, it still made good power without smoking afterwards, however oil consumption was pants (300 miles/ltr!!).
Bought 2nd hand engine off e-bay, stripped back to short block, rebuilt top end, new turbo, clutch, oil seals & gaskets, water pump and rollers, and installed in the car earlier this year. No 4 had slight scratching however it made comparable power with other turbos at the dyno day last week. So, thanks Fen, but no, my plan was to try and get the original engine back up and running. Tom, please be my guest...
Thanks for the info about oversize pistons. I have tried Bert and Ski (Rennlist) to no avail. Not yet tried OPC or US suppliers (I see that LR are advertising Mahle oversize pistons - what's the diff between 4032 and 2618 forgings?) however 2000 euros is probably a bit steep. If that was the price on offer, I would try for an S2 crank and oversize strokers... which, if noboby knows of a block, is looking like the way I'll be going!!!