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Engine Woes

cs56

In Third Gear
My Serious1 is 50 years old this year and it would be nice to be able to scud around the countryside in it's birthday year. The current engine is a two-and-a-quarter ex-S3 diesel and it smokes badly (runs sweet as a nut, otherwise). The sort of work it might need is beyond my capabilities so, given perhaps £700-£1000 to spend on it, what options might be open to me.
 
The smoke is blue(-ish) and occurs continuosly from start-up to shut-down. There's enough of it for it to be embarrassing.
 
In that case, it's bore/rings/pistons. If you take the head off, you'll be able to check the pistons and bores. It ight just need honing and re-ringing, or the pistons may have small cracks, which would all be relatively simple and cheap to fix. Until you lift the head, you won't know...
 
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