When I fitted the brand new short engine to my 4.6 a couple of years ago, I used my existing heads etc. The assembly went fine considering the original engine was a late 96 build.
To be perfectly honest Gav., I feel that there may be be more than just replacing rings and shells..you have a short engine that the history is unknown. Why wasn't it sold complete?
The ring set, shells, gaskets, studs or bolts are going to cost a fair few bob and from a personal point of view, I would think very carefully as to whether the present engine is a pup. I know that this is not what you want to hear. The water traces in the oil worries me, plus if the rings have gone..would all 8 sets just die together? If it is down to lack of servicing or oil changes, then the interior of the block would also be crudged up and filthy, yet you say that the liner bores are smooth and unmarked..something just doesn't add up. If you fancy a chat, send me a PM and I will give you a call, I'm only tatting around.
