I've been lurking on this forum for a little while now, but the time has come to step into the light and solicit opinion from the elders and betters of this place (and the idiots if necessary

I used to live next door to a dude who restored beetles for a living, and he whetted my appetite for the Syncro, last year I stuck a bid on one on eBay (to see what the reserve was), much to my surprise it ran and I became the accidental but proud owner of a Wolfsburg 1.6 turbo diesel day van:-

Now it ran like a particularly slow snail, so recently I shelled out for a new blower, and while the vet was there I had a new cambelt put on as wellplus a flush through and cahnge of body fluids and filters, and it was running sweeeeeeeetly, so I decided to take it to Yorkshire (I am based in Staines) - had a loose cat on board with the windows up on a very hot day, but that's another story
Anyway, got to J24 of the M1 and it pumped all of its oil over the back window and started running badly, I stopped immediately, it was ticking over (badly) but I got it recovered (don't ask how much...)
I took it to the vet who did the original work for me, and he pressure tested all the pots and it seemed fine, so he just put a new pressure sensor in (that had blown out, happens apparently, and that's where the oil came from), and re-oiled it again. Today I went to get it, he was driving it home for me, got about 3/4 of the way (it's only 2 miles) and it graunched and stopped, now it won't even turn over, so it has obviously had some sort of organ failure.
In my shoes, would you be looking to
- rebuild this engine
- Source a new/recon 1.6TD
- Re-engine with something a bit gruntier (I am going to use it to lug boats amongst other things)
R