Any Bosch engine will bolt right up and plug in and go in your DII.
GEMS vs BOSCH Engines - Discovery I, Series II, Range Rover 4.0 & 4,6 - Tech Tips at RoverParts.com

Personally I think if you do a complete coolant flush and refill with something other than Dex-Cool you will be fine.

Dexcool Pictures

 

There is the possibility that there WAS coolant in the oil before the po flushed the engine...not trying to scare ya or anything. But I would keep a close eye on the oil.

 

Bentjeep67 - FYI as a new owner you might be interested in Disco 2 at LKQ on Hwy 80, and Cash & Carry has about five Discos on their salvage yard at this time. A great source of oil on the underside is also the front seal, throws it everywhere.

 

SavannahBuzz,i went and checked out the discos at LKQ,Nice 01 green one..needed the visor clip but all were gone already..going to power wash under carriage and lower engine so i can see where my oil is coming from..you mean crank seal correct? Im going to search for other info aswell,it seems my blower does not really push alot of air out of the vents? the ac blows cold and all speeds on the switch seem to work,but it takes a while for it to cool down inside..could be the black truck with black leather to i suppose..I have the three amigos,and no cruise control,they related as i suspect? i will hunt for info in the threads,,thanks and cheers

 

Bentjeep67 - for your AC blower issue, drop the fan unit under passenger dash (three bolts), it will probably be full of leaves. The blower wheel is mounted with the open side up, so it catches everything. There is a tech sticky that shows how to make your own filter, using coarse spongy filter material from the hardware store, it goes across a strip of plastic under the windshield. I also shoved a piece across the air duct that leads to the blower from the windshield area. Another post on this forum showed a fan that was full of hood insulation, varmits had made a nest. And careful with that blower - they are a high priced item. My AC puts out 42-44 degree air from the center vent. You might want to check with some AC gauges. My PO had replaced the front electric fans and got them backwards, so at idle I would overheat and the AC compressor high side would go to 400 PSI plus and shut down. Hope yours is just leaves. While you are under the hood check betwen the radiator and AC condenser for any more leaves, you can have a good build up in there.

I only get to work on my Disco - got it for my 17 year old daughter, figured it was heavier than my F250 and the 4WD might get her out of the ditch without calling Dad... I was getting about 15 mpg, changed to the cone air intake filer and removed the stock air filter box, now getting 17 and more. Since minimal off roading, not worried about dust. You will find posts on this as well. About $25 at auto parts store (K&N knock off store brand).

A great salvage yard(s) in Atlanta is Upullapart, they have a web site with on line inventory, what date it arrived on the yard, etc. You can register and get emails when your model come on the yard. Of course, in a metro area of millions, so do other Disco vultures.

I did mean the front crank seal. Slowed mine down with the finger of RTV around it, have not done it yet. To change it they have a post somewhere, use an old serpantine belt and a short pipe. Loop around the crank pully, thru the pipe, and squeeze off the free end with a visegrips. Push pipe against frame, and use your cheater pipe on your breaker bar for that crank pully nut, which is 185 foot pounds. Seal is about $3.

I still haven't got my cruise to work, have swapped control modules, etc. Believe my problem is the switches in the steering wheel, going to wait on that one.