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Steve throw those bolts away and buy new ones that are the same grade. There are a few bolts that you always need to replace. Exhaust manifold, turbo, and flywheel. Those over torqued bolt will run the risk of snapping. put a threaded insert in the flywheel they come with a permanent locktite, I...
The paint is to protect the flywheel surface from rust during storage. Sand it off the flywheel face using a orbital sander with 220 sand paper. Make sure to keep the sander flat and finish the cleaning with Lacquer thinner.
Nice job cleaning up the top end Steve. Those Gaskets still look good. Make sure you cover all of those internal parts in oil before closing everything up. Are you still looking for a turbo?
Yes, the DT466 is a very similar motor, nothing is easy but it can be done. There are more options on...
Minor rust is not an issue as long as things are lubricated. Check the bores out with a scope. Then dump fresh 10w30 in all the cylinders. Take the valve covers off and clean as much as possible. I don't think disassemble is needed! Unless it is real rusty, you will be opening a can of worms...
Hey Mcgregor you should try to find a LDS. I just finished some work on a customers M35A2 with a LDS in it. I took it for a test drive and what a difference over the LDT. With a LDS you can power 1100 easy. My buddy in Conn. has his truck set up this way.
Sorry to hear about your baby. A&H Recon. Shop is here to help. Like I said on the phone, this would be a good time for a DT466 upgrade. We can find you a multifeul ldt or lds too!