Got the head back from the machine shop. Needed 10 valve guides, 1 seat, 1 valve, 16 valve jobs, resurface, plus pistons swapped. Cost= $460
They tell me the guides are discontinued, and I got some of the last batch. But I did find more on Mini Mania.
I'm putting it back together, honed the cylinders and cleaned the block. Having a helluva time with compressing the rings, used 3 different tools. I chipped one of the oil control rings, so I ordered another set overnight. Maybe Tuesday.
Taking much longer than I thought to get this done, but it will be right. More pics to come.

 

Just one random note: there is a check valve right below the VANOS solenoid. It's inset in the head, and you need a torx to remove it. Make sure that this one was removed during head cleaning; otherwise there may be crud in the oil lines that will make you take off the head again.

 

Thanks for the tip!

 

Looks like it's all coming along nicely, thank you for the updates.

I wonder, when you were diagnosing the water in the oil, did you ever take the coolant reservoir cap off to look for air bubbles? Not sure if that's a valid check on a Mini, but thought I'd ask.

 

Thanks. We were out of town all week, or I'd be done by now. I did take the coolant cap off early on...there was smoke and a bad smell. You should have seen what came out when I first removed the drain plug, seemed like a solid stream of water for a minute, then finally the oil. The initial dip stick pull showed just oil, so it was a real surprise.
I'll have more pics Monday.

 

Thanks for posting the updates. I'm trying to diagnose a coolant loss on one of mine, and your journal is helping me understand my Mini a little better. Much appreciated, and good luck with your continued journey.

 

The apocalypse continues. My piston ring compressor that was highly rated on Amazon BROKE after 2 pistons, thanks Taiwan. I decided to do it right and order the Snap-On equivalent, made in the USA. Well those arrived and my 6 piece set contained 2 of the same size...completely missing the smallest size I need for this engine. This is another of many setbacks for the car but I am trying to get the tool.

 

Wow. And people wonder why there's a swing to buying cheap ****. When you can spend half as much to have it screwed up just the same, then why spend more?

 

They had one job...
But they are sending me another set no charge, I get to keep both.

 

I'll need to post more pics...I finally got the proper tool and it still took hours and hours to get the pistons in. They just wouldn't square up but I finished the last one today.
I also did the oil filter housing gaskets, one less thing to worry about.
I installed the head today with ARP studs and Fel Pro gasket. More to come.