ok so basically ive patched her up till this point but now the rego has come in and my neighbor isn't going to pay this time so its all over to me.
ive got a few options at the moment.

1. spend $150 / $200 and replace head gasket, valve stem seals, timing chain and just about all gaskets on the current engine. hope that lost compression is caused by bad head gasket.

2. spend $150 or so on a low k second gen engine and tranny (possibly Manuel?) and stick that in there. i say second gen because apparently they are a better engine in regards to timing chain set up and head.

option 2 with a manual box appeals because its a bit more simplistic and as far as i can gather the manual boxes are nice and robust? all i wonder about is will my manifold and all efi sensors connect strait up and work as they should? also if i go auto will the auto connect up if i modified the electrical connector's. did a quick search but couldn't find much info. i know a friend with a second gen auto in his back yard that i could hopefuly scab cheep?

only problem with option one that i can see is that my engine already has low compression in two cylinders and the way it doesn't build up oil pressure too quick indicates sad oil pump and possible damage from that.

thanks for you input - hopefully it will become a good project!
regards jay

P.S. if i take the engine out can i role the chassis around to get it in / out of the garage or do i need to leave the drive shafts in so the hubs dont fall off?

you have to refit the outer spline and nut with the cv shafts

to be able to roll the chassis without the gearbox

fair enough. i might pick up some outer cvs from the wreckers next time im there so i dont need to pull my ones apart.
anyone have any idea what a disc grind is worth. i coulds easily do it at tafe on one of the big lathes but the setting up and time is the killer factor seeing as they dont have the proper mounts there. .