Well I still can't work out the issue with MIchael's clacky engine (when warm) and looking at replacement second hand lumps they are going for £600 (ish) upwards.
Anyway a M Reg 4.6 HSE with 150K on the clock and no MOT has come up very close to me. It hadn't started for a few months and the seller said he didn't think it would start, but I decided to go and have a look anyway. I got there and he said he'd try to start it using his van if I wanted to help... we hooked it up on jump leads, let it charge for a few minutes, turned the key and ..... he fired up! I have to say not much crap came out of the exhaust for a car that's sat for months, and the engine was very quiet for a V8. I also was shown about £700 worth of work that was done earlier in the year - new rad, water pump and heater matrix, along with a few other bits. After 20 minutes of running there was no overheating, no funny noises, and when we switched it off and tried to start it again it worked - so the alternator is obviously OK too.
The body work is a different shade of blue so no panels are good for me, although there are good panels in 965 colour code. It has Stormer alloys, which I am not sure I want yet, so I am pretty sure I can recoup my money OK.
So I am thinking of taking some holiday days, whipping the engine out of Michael (which is annoying as I did the mini refurb on it!), keeping the LPG system intact but out of the way. Then getting the engine out of the new Rangie, do the mini refurb - core plugs, seals etc - and chucking it in Michael, then popping the LPG system on it eh voila!
What does everyone think? I am sure I'll have lots of spares for mine, as well as bit's to sell to recoup some costs... so as long as it's a good engine (which it certainly sounds like) then I am getting my Rangie back for winter! Then he needs an MOT which he passed with no advisories last time.
Seems a pity to essentially scrap the new one, as it's not bad at all, but needs must!