My apologies....when he said recovered, I took it as he was able to get the motor to start again and drove it to a shop. Try calling around to some of the US rebuilders and ask about the interference issues. www.metricmachanic.com, Bavarian Engine Exchange & Rebuilt BMW Parts. As for junkyards in your area, I have no clue how to help you. I've seen 5 series forums specifically from the UK, so maybe they can help since we all share the same motor.

I've found this one on Ebay and its not too far from you.

X5 BMW X5 4.4 V8 bmw petrol engine on eBay (end time 30-Aug-09 23:02:04 BST)

I hope you can get yourself back on the road without too much cost.

bring it to someone else for a second opinion. the engine may be ok.

Thankyou all for your advice.

I think that as the garage has said that the chain has snapped, the garage must be fairly certain about this fact. I've spoken to a few mechanics and they have all done a sharp intake of air when I've mentioned it.

I was looking at old 540i and 740i cars with the 4.4i engine and thinking about buying the car and doing an engine transplant. These cars are only going for about $5000.

I hadn't thought about ebay for a used engine, let alone a rebuilt one. I think that price is fairly good considering...... I think that'll be the route to go.

I'll keep you updated.

I'd say with the price of that eBay rebuilt unit that says they install it for 450, that may be the way to go. Fully rebuilt engine installed (with your old engine as a core I'd assume) for about 2300 pounds. (~$3900 USD) and you can be back on the road within a week.

I spoke to the guys from ebay and then went over to see them. They have sold the engine advertised, but have lots of spares. They say that the hard bit to find and that they can rebuild my engine for less than the one they were advertising.

I've got to get the address of the garage where my car is and they'll collect it as well for me.

They looked like a typical engine builders. There were engineless cars everywhere and engines were all on the benches with a few people rebuilding them. They looked like they knew what they were doing which was reassuring. The boss knew about engines, and this block specifically, but said that his workers, knew much more than he did. He put his hands up and said that rebuilding an engine properly was beyond him which was why he had other people doing it for him.

He reckons it'll be a week or so as they are busy at the moment. Watch this space......

Good, I hope it all works out for you.
There is nothing better than finding a good indepedent garage.