Shouldn't have problems with liner slippage as that disaster senerio tends to occur with the later 94mm bore blocks, I can't comment on the valve damage(?) question though. Being totally bias myself I'd say if you can't afford to run it get something that you can - no offence, but it's a case of 'horses for courses'
 
Yeah, general concensus is that the V8's dont hugely enjoy running on gas and for the price of a gas conversion you can send it to Armson Auto Enginieers (google him) and for the price of a gas conversion he can have it doing the best part of 25 mpg. Witht the way gas is going it wont be worth the hassle soon.

But if ure desperate the 3.5 handles it best.
 

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