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head gasket and head work vs. engine swap ?? 89 745 B230F 700

I just bought an '89 745 5spd with 115K miles. Under the previous owners it blew a head gasket. The gasket was replaced but the head wasn't checked and it blew again a few weeks later. Coolant level stays constant, but low compression on #3 cylinder and it smokes out the dipstick / oil fill when running.

Local U-pull it has heads for $41 and motors for $130.
I'd spend about $50 getting the old head checked for cracks, and $100+ if it needed machine work.

an IPD head gasket kit, plus the price of a junk head comes out to about $100...


I'm not sure which route I want to take. Financially they are all in my target range.



Are there any problems I'd run into putting the motor from an automatic transmission car into a 5 spd car? Do all B230F motors have the thrust bearing for manual transmissions?

If I just do a head and gasket is it likely the hot combustion gasses that leaked into the crankcase have damaged anything? The oil on the dipstick didn't look bad, it actually still had a golden hue to it. (like the oil looks when you drain it out of a healthy engine)

Yet one more question... is the IPD head gasket kit worthwhile or should I just get the cheapie from the local Advance Auto?


A little background:
The car is no concours winner, with some dents and fading clearcoat, but it's got a lot of new parts and good miles. I bought it to haul the dog around and commute to work.


Thank you in advance for your input.
Rob






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