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I used automotive seam sealer from a mastic gun,it sticks like poo to a blanket but there are probably cheaper ways of doing it.I figured that it would keep any water from getting between the seals and the rust-prone bulkhead.

If the exhaust tailpipe was submerged you might need to keep the revs up to fight the water pressure,maybe that's partly why the engine stopped?

I use my series 3 diesel every day,as my sole form of transport,and it starts first time - even in winter!:)

I thought I'd qualify for classic insurance on my '74 S3,only to be told by the evil parasitic creatures that lurk behind the counter of my insurance brokers that it doesn't apply to your main everyday vehicle,just your second,third fourth etc.:mad: Ten years ago I used to get classic insurance...

I have a Series 3 with an ancient 2.25 diesel engine,and I love it to bits.It does about 27mpg,which compares very favourably with the 17mpg I hear you get from a (good) petrol.:p