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I got my D2 a few months ago. It was a salvage auction vehicle. Having a P38 and researching Discoverys I knew the risk of the engine.
From day 1 it had a ticking sound. Symptoms are:
Ticking does not start until the engine is partially warm
Seemed to be on the left side
Coolant level does not hold and needs refilling.
I scoped the cylinders today by removing the spark plugs and putting a scope down into the bore to look at the top of the pistons.
I'm afraid my fears are confirmed. #7 looks steam cleaned which leads me to think there is a slipped sleeve on that cylinder.
I wanted to see if I can get some others thoughts before looking for a replacement engine.
A steam cleaned piston could be many things other than a slipped liner. I would think head gasket or cracked block before slipped sleeve. The only way to know is to remove the heads.
You can do a head gasket replacement with engine in situ. Not a big deal.
Use all-metal headgaskets and that will stop a slipped sleeve, but even if it didn't it is manageable to pin a sleeve with the engine still in the vehicle.
Get your heads decked. Pressure test your block. Rebuild with ARP studs.
I worked 4:30 to 7:45 for 3 days then 1 full day 8:00 - 4:00 and I had my heads out in the driveway under a tarp. Last time I did this was over 30 years ago, it really is not rocket science.
Take your time read the RAVE ask your questions ahead of time and if you get stuck or unsure while you are working post a question here
You will get a wealth of help from the folks on here to help you through.
The engine has about 135,000 miles on it and I think it may have had a head gasket job already. (2 of the four bolts were not replaced for the coil pack to the block and on2 of the studs is missing on the exhaust manifold to the exhaust just before catalyst on the left side. Of course even if a head gasket job had been done I don't know if it was properly done)
The ticking sound after the car warmed up a bit. Even if it is head gasket would this explain the ticking. And if it was rocker arm making the ticking, would that make the sound when the engine is first started?
Also you don't mention, but have you been using 0w30 or 5w30 oil in it? The condition of your oil pump is known good? Any recent oil pressure readings? Low oil pressure (and worn bearings) could be the cause of a warm tick.