What about a new "used" engine? My block went last spring and I found a 4.6 from a P38. Mechanic friend installed it. I spent around $2500 all in and I actually Love this 4.6. It doesn't have any of that bull**** that comes on the newer 4.6. I will say it did take a while to find a decent engine as most Rover V8's are sold already in crap condition. sorry about your engine issue. Hope you find a solution. If you can't find a decent engine then just go buy another D2....mellow 2000-5000 will get you a new D2.
You can probably get some $$$$ selling parts off your truck.

 

All of the parts Discos I have seen (advertised from $900-2500) have bad motors. You could find a wrecked one.
Truth is, though you can buy a whole working car, depending on location/condition for $3-10K USD.

If you live in a smog free zone, I'd put a 5.3 LS engine in it in a heartbeat! It's not a failure, it's an opportunity!
https://www.alternativeconversion.co...p-standard-kit

I talked to this guy, and he seems legit and a good dude. I would seriously consider it, if you decide a new motor is in your future.

 

Unfortunately, we live in a smog area, so an LS is not an option. These later Rover V8 engines are fundamentally flawed, so swapping in a used engine is not something I would consider as every start is like pulling a pin on a grenade.

To complicate things, in addition to the bad engine, the vehicle has a rusty frame. With the recent increase in values of solid axle Land Rovers, we would fix it and get our money out of it. I don't think that is true with the rusty frame.

 

If it will be dead and thats it ... then buy a new one and work on the old to make it camper trailer .

 

That's brilliant, but I'd try keeping the front doors & windshield too. A chop at the firewall and you're all set. Tongue weight might be an issue.

 

Well, the heads came back and they are good which means the problem is with the block. We decided not to keep the vehicle, so now we have to decide how to dispose of it. We can either sell it as is as a parts/project car. Alternatively, the shop wants $1,100 to put the engine back together and get it running again which would probably make it easier to sell. Any recommendations?

 

Sorry to hear this for you, man!

Don't put ANY money into it. Don't band-aid a pooched motor, it's a waste of time and your money. And only adds marginal value.
If you want cash: part it out.
If you want to get rid of it, sell it to a dismantler for ... $200?

There are parts cars here in Cali that list at over $1,000, but I think the move at closer to $500?

 

The easiest way out is to donate it to a local armed forces charity for a $500 tax credit. They will come and tow it away.

I don't have the time or inclination to part it out.

 

Where are you located? I need a parts car

 

In probably a stupid financial move, I ordered a Turner short block and it came in last week. New motor mounts are going in, but any suggestions on work that should be done while the engine is out?