So after that, I knew I'd be changing the engine. After some research and price checking, I decided to go ahead and upgrade to an L32. The price difference was minimal, if not cheaper (more on the cheaper part later). I pulled the old engine first, to clean the rockers, rebuild the lifters, clean push rods, clean valve covers, etc. and I found that sludge had clogged up an oil passage, starving the engine of oil, spinning a bearing, and thus causing a rod knock:




Sludge:



Rockers:


I don't have any pics of them clean yet, but they'll be coming. I completely disassembled every lifter, and cleaned them until they were SPOTLESS. All 12 were stuck. Anyways, I found a L32 (out of a 2004) and the JY said it was 155k for $650. I drove up there with my old engine (2 hours), just a short block, heads, the old S\C, and LIM. The L32 looked to be in great shape, I gave the 2004+ TB back to them, since I wouldn't need it.



The flywheel has 120483 written in paint pen on it, so I think the car had 120k on it when the engine was pulled. Then I tore into it a bit. Now I think it has even less mileage on it. Both my father and I have built engines before, and we agree it looks to have around 40-50k on it. If it does have 120k on it, it has been VERY well taken care of. Since it's a 2004 L32, it still has a steel oil pan, and this block still had plastic intake gaskets. I pulled everything down to the timing cover to clean, along with the rockers and push rods. I pulled 3 lifters, disassembled them, and they were in just as good of shape as the ones I rebuilt, so I just used them. Pics:
Before cleaning:



Plastic gasket, what a surprise, it was leaking:

One side is clean:


Timing chain, I was going to replace it, but based on the wear I see on the tensioner, it's pretty new as it is.

4509, L32 rods:

Date stamp under the oil pan:


Cross hatching:

As it sits now, I have most everything cleaned, just need to wait on parts.


I have the engine bay about 60% clean as well, I'll be working on her more this weekend. What do you guys think?