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Just got the engine back in mike's truck. The block has been bored out to 0.5mm oversize, new pistons and rings and polished crank. Thanks to the really friendly guys at Arnetts in Doncaster. We've also put on a Roughtrax assembled head, new (chinese) turbo, new injectors and glowplugs. It now really is running like a brand new engine. No smoke!! 
Just a couple of tips when re-installing engines:
When re-installing the throttle housing, don't forget the rag you stuffed in the inlet manifold to prevent things dropping in. That was an OFH moment 11:30 saturday night.
When bolting the flexplate to the torque converter, if you drop a bolt into the bellhousing, go straight for a magnet, don't try to retrieve it with your finger, you will just push it further and further in.
Hopefully now we won't have to do that for a very long time. Perhaps I shouldn't have said that.
Just a couple of tips when re-installing engines:
When re-installing the throttle housing, don't forget the rag you stuffed in the inlet manifold to prevent things dropping in. That was an OFH moment 11:30 saturday night.
When bolting the flexplate to the torque converter, if you drop a bolt into the bellhousing, go straight for a magnet, don't try to retrieve it with your finger, you will just push it further and further in.
Hopefully now we won't have to do that for a very long time. Perhaps I shouldn't have said that.