Long time, no update - though I discussed some of this in my other thread recently.
So despite my posts above, I decided to go ahead & replace the rod & main bearings in situ. It was kind of a E36 M3ty job to do on my back under the car, but I took my time, mic'd the rod & main journals to ensure they were still in spec, checked the thickness of the new bearings to ensure they were in spec too, torqued everything to spec per the FSM & reassembled.
It was really hard to start & didn't want to idle, but with enginekev's assistance I was able to get it running for a few minutes, then do an oil change. The next weekend took it for a drive around the block & it died suddenly a block from home, and wouldn't restart. We towed it home & I listed it on Marketplace - I was done.
The next day I hooked my 60-amp starter/booster to it & briefly got it to start - I was immediately greeted with a rod knock louder than before. berkeley. My hunch is I probably screwed up something somehow, and this time it actually spun a bearing, which I'm guessing explains the hard cranking & difficulty idling I'd experienced.
So I deleted my ad off Marketplace, because this really is a car I want, and it has a lot of good parts on it(plus a decent paint job, which is not something I'll ever do myself). I think I'll find a good used engine, then pull this one & see what's salvageable. I'd like to be able to reuse the rods & pistons, although that will mean boring out the next block for them. I did get a lead on a machine shop in the region who has 4g63t experience at least. So I'll eventually drag everything to them, let them figure out what's good vs. junk, and pay them $$$ to build the engine correctly.
Of course while the engine is out would be a good time to send the trans out to be gone through & upgraded a bit. And at that point I might as well send the shocks to Koni for rebuilding & revalving...
So it really sucks that this won't be the Challenge car I'd hoped & planned for - I think it could have place well, especially at autox. I'm certainly not looking forward to spending fistfuls of cash over a long drawn out period of time before I can ever drive it again, but obviously trying to do this cheap hasn't worked out at all. Besides, looking at any other turbo AWD car likely leaves me in a similar situation of having to rebuild & upgrade to get it where I want.