Quick update... Engine out, crank, cam, head, block and crankcase all with Automotive Services in Northampton. They've looked at everything as reckon that the shiny marks on the camshaft bearings and the small marks on the BEB's are normal and that the engine looks to be in remarkable condition for 128K miles. Kinda what I expected!
Still with apart, I'm going to have the crank and cam check for straightness (don't expect any probs) and polished. New BEBs, Cam bearings and Mains, the head will be stripped out ports cleaned, valves ground and refitted with new oil seals. Block will be honed (although you can still see original hatching) and piston rings replaced. The injection pump drive gear will be replaced (seems cheaper than fitting a new bearing). Everything has been put in the hot washer and the block will be aqua blasted and painted (grey).
I'm going to have the Turbo refurbed (it's not damaged but always good to reset things to new standard), then will begin the rebuild with all new bolts.
The engine was stripped with head, all ancillaries including turbo and manifold off before lifting it out. I'm assuming that I can rebuild the engine completely and lift the lot in... Is that the best way? It will be easier to build everything, torque down the head, adjust valve clearances, fit the pump, turbo, EGR, alternator, belts etc. all on the engine frame. But will it go in easily enough with the coolant radiator out of the way (aircon rad still in)- will there still be plenty of clearance other than the harness that comes over the transmission on the lhs of the car??