Its been a bit of a saga since I decided to do a swap for newer used engine for my X. It has almost 300,000 miles on it and has been running rough. Compression testing and leak down test revealed a blown head gasket between number 1 and 2 cylinders. It hasn't broken through to the water jacket, so no white smoke and it actually still runs pretty good. Just rough idle.

So I ordered a used engine with 60,000 +/- miles from a 2006 X5. It was warranted and supposedly tested. When I got I did a leak down test on it (no bell housing, no starter, no compression test possible). It wouldn't hold pressure in cylinders 2 and 3. Sent it back. It took them about a month to find another candidate of around 60,000 miles. I got it Friday.

I put it on the stand and did a leak down test and it passed on all cylinders this time. So, I started taking it apart as I want to replace most gaskets and seals since it is a 20 year old engine.

Surprisingly enough the pan gasket was still flexible and not leaking. Same with the OFHG and front and rear seals. No leaks! That said when I dropped the pan I found lots of black crud. It looks as though this was a car that wasn't driven much for very long trips. I suspect the rings are clogged as the plugs were black. Inside of the intake manifold was pretty darn clean, very little oil. I'll do a ring soak on it.

The outside of the engine looks like it was submerged in water for some time. I saw it was shipped from New York where they salt their roads and that explained the bad corrosion.

I've begun the cleaning process and then will be changing the oil pan gasket, OGHG, front and rear main seals, the Vanos seals, axle carrier seal at the pan, front diff seal to pan, oil pick up tube O-ring, possibly the OFH check valve, valve cover gasket, changing valve cover to aluminum, new intake manifold gasket, new plugs, and installing a safety wire on the oil pump nut. Once I get the front timing cover off I'll see what shape the chain guides are in, may change those if I need to.

This engine has never been taken apart as best I can tell. Every bolt and nut I took off made that never been loosened "crack" sound. Original BMW water pump is in good shape, I'll change the O ring and reinstall the pump. Same with the thermostat. I pulled the two coolant pipes they both broke off in the head and front cover. Not unexpected, but a little surprising given the condition of other parts on this engine.

I'll be getting this engine all cleaned up, painted and prepped for the swap over the next month or two. Since its my daily I will be doing the swap between Christmas and New Years when I take my usual time off. I'll be photographing and documenting the work as well as the swap. Wondering if anyone would be interested in my posting the process and pictures?