I have an overheating 2002 discovery II, 230'km. ]Confirmed it was a head gasket leak and got to work on the teardown.

Just removed the heads and valley gasket. I noticed that the bushing that the lifters slide into are worn and chipped as if the lifter squashed them. I'm wondering if anyone has experience with this and if it needs to be addressed before reassembly.

 

Never seen that before, likely done at the factory based on the oil sludge buildup on the displace metal.

 

Dull spot facing tools during the machining of the block at the factory.
Not a functional surface so it will not be a problem.
If they haven't fallen of already no reason to think they ever will.
If you want to break off the bigger ones with a pair of pliers go for it, just don't drop them into the engine.

 

Those lifters have odd wear patterns on them as if the actual lifters, not the block, have been hammered on.

 

Oh interesting, that makes sense to me. Thanks for the input everyone!