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Remanufactured b20 making a honking noise every 2 seconds 1800

Hi all,
I've just had a Volvo remanufactured b20 installed into my 72 1800e. We think the engine has had about 15,000 miles since being remanned. Then it sat on a shelf in a shop until the person I got it from bought it.

My shop that did the installation mated it up to my BW AT, and moved the FI stuff from the original engine (with a cracked piston) to the new one (well, new to me). They've gotten it all mated up and ready to be driven away (well not quite).

When the car is in neutral, it makes a sound like a car alarm going off every 2 seconds or so. My mechanic thinks it might be a thrust washer issue, and that the crank may be moving slightly from side to side. It sounds like the sound is coming from the middle of the engine, underneath the exhaust manifold.

When the car is in gear, the honking sound goes away.

Now this engine hasn't been run for a very long time, and the rings don't seem to have seated yet. It's only been run for a few minutes at a time, as it is smoking out the shop if we run it too long.

My mechanic is a Volvo master tech, but this engine came out when he was still in pre-school, so I can't really blame him for not knowing all the tips and tricks for a b20.

So any of you b20 gurus, I'm all ears. (I sure hope it doesn't involve tearing the engine out of the car and tearing it down).

Thanks in advance.
Bruce






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