I thought I would document the rebuild to save others from some of the problems I encountered. This is not a step by step. Refer to the Factory Service Manual (FSM) for the best instructions.
Disassemble.
Take pictures. Lots of them. It's impossible to remember where every part goes especially when others are helping remove things. The FSM helps but some diagrams do not show every part. Don't use an air gun to break things loose unless there is no other option. They're great for spinning things off, but also great for breaking bolts and stripping threads.
Save every thing in containers. Save the old parts too. I had to refer to the old timing gears to make sure reference marks were where they belong. The new gears were marked differently. I used Heavy zip bags for bolts and small parts, and labeled them. It made finding things much easier during reassembly. Next time, I will buy an even bigger box and save everything by actual part removed. Separate things so you can find them when it's time to put it back together. Save the knock pins from the cam bearings and head. Shops tend to loose them. If the shop wants them, make sure you get all of them back. Keep pistons, rods and bearing caps exactly as the came off. If not marked, mark them 1,2,3,4 and Front as they come off so they go back exactly where they were. Same for the cam bearings. Watch for the Knock pins. They fall out. Careful removing the bolts for the bottom of the case. The inner ones are metric star type bolts. Use the correct socket. If you break one, leave it. The engine shop is experienced at taking them out. Don't do further damage trying to remove it. Save the crank pulley key somewhere safe. Reinstall the cams with the bolts loose.
Engine work 1
Take your head, block, pistons and rods to the best shop you can afford. I used a well known shop in town. It took a long time but the results were amazing. She looked like a new motor. Ask the shop how much oversize to order pistons, rings and bearings.
Parts order
Order the rebuild kit. Specify the over sized components from the engine shop direction. Some parts are not in the kit. Buy them now. I ordered a kit from and Ebay merchant. It was fine but came with a cheapo head gasket and missing several O-rings.
Missing parts you must have. The oil pump drive chain and follower are not in the kit. Buy them. You've gone this far, there is no reason to use an old chain and follower. Good head gasket. Spend the cash and buy the FelPro head gasket. New Head bolts.The head bolts are "torque to yield" and should not be reused. Spend for the Fel Pro. I got mine from Advance. O-rings. These are Dealer parts. The kit was missing the O-ring on the cam sensor and all the water o-rings. Take the old o-rings off everything and just buy them all. It's cheap insurance.
Missing parts you may want. Crank sensor. It's buried. I would replace it now. Temperature sensor. Also not easy but not as bad as the former. Thermostat. Upper and lower radiator hoses, clamps, belts, etc. Cheap easy insurance. Oil filter, air filter, oil, antifreeze and other consumables. This engine wants synthetic. It extends the life of the timing chains and followers. I bought a bunch of brake cleaner, carb cleaner and Ultra Black Silicone. Extra can be returned. Replace those crappy clamps with screw type any where you can.
Engine work 2
Take the kit to the engine shop. Ask them to work the block and head to the kit specifications. If they are any good, they will. This way the surfaces are milled to the exact specifications of your set of bearings and rings. They may have to order stuff to finish like lifters and guides, but the end result will be less worry. Don't bother them. One call a week is plenty. You don't want this work rushed.
Clean
While your waiting, clean everything. I took mine to the power wash then used our parts cleaner to scrub everything down. Get the mating surfaces as clean as possible. Take the radiator to a shop and have it cleaned and checked. Take everything off of it first. Cheap insurance. If the vehicle was sitting for a long time (mine sat for a 1 year before the PO sold it) drain the gas tank. If anything up front needs to be replaced, do it now while you have work room. I replaced a leaky rack and pinion.
Reassemble
Wipe down surfaces before applying sealers and gaskets. I used Brake cleaner. Pay attention to torque settings. Use them religiosly. Watch out for in./lbs. and ft./lbs.
Crank
Install the oil drive chain before dropping the crank in the case. No I didn't forget, but this is where I learned the oil chain was not in the kit. DOH! Watch out for the shims. There are two in the middle bearing area. Coat them with a thin layer of assemble lube and put them in flat side against the case. They fall out really easy when you put the crank in so watch for them. Oil the bearing surfaces well. Clean the case surfaces really well. There is no gasket here, so they need to mate perfectly. I used a thin layer of Ultra Black on both sides. tie a piece of wire to the oil pump chain to keep it out of your way later. Torque to spec then turn the crank to make sure it spins freely and there is no slop.
Pistons
The shop probably installed the pistons to the rods for you and hopefully labeled them 1,2,3,4. If not, you need to. Rod bearings are paired and have a direction pointing to the front of the motor. Keep rods and caps together. Mark the top of the pistons with a sharpie. Make a mark on each at Front, Back, 45 degree, 135, 225, 315. You'll need the marks when the rings are installed. Follow the ring stagger directions. It takes time, but has to be done right. Once done, set them aside. Cut two pieces of hose the size of the rod bearing bolts about 2" long. One at a time, check the rings again. Pull the bearing cap. Stick on the two pieces of hose. Oil the rings. Double check them again and drop it in the cylinder. The hose protects the crank bearing surface from a scar from the rod bolts as the rod goes down in the cylinder. Oil the surfaces before installing the caps. Tourque per spec. Double check the direction of the markings on both the top of the cylinder and the rod cap, then wipe them off the piston with carb cleaner and a rag. Wipe the inside of the cylinder with oil.
Head Bolts
When it's time, make a box, cut holes for the bolts, dip each in 30W oil, hang them in the box and do something else for at least an hour. I suggest, blow out the head bolt holes. Spray them with brake cleaner, wipe them good with q-tips till every hole is clean and dry. Blow them out again. Clean the head surface and block surface. Wipe any excess oil off the head bolts. You want a thin film and no more. Oil in the head bolt hole causes hydraulic locking and may result in a broken head bolt. Mine broke and it's not fun. Take your time and follow the tourque procedure exactly. I actually installed the intake and injector rail before dropping the head, but that was just me. The intake bolts and nuts are really hard to install and torque so I put them on and installed the head as a complete assembly.
Timing
Remove the old cam gears. Rotate the crank 90 degrees clockwise from TDC before cam installation to insure the pistons are clear. After the cams are installed wait an hour before starting the timing installation. It's to allow the hydraulic lifters time for the valves to settle. Turn the crank back to TDC and if you feel any resistance at all, stop and check things out. You may have one stuck and the valve is protruding into the cylinder. Follow the timing instructions to the letter. If in doubt, take it apart and check the lifters. Everything has to line up exactly as specified. Get a second pair of eyes on it. Sometimes you can look at something wrong for so long, it looks right.
Dropping the engine
Did you install the crank sensor? Nows the time. Only one weird problem here. The oil drain plug sticks out just enough so it hits the front differential and does not allow the engine to tilt enough to slide in. Pull it and reinstall after the engine is bolted in place. I lost a half hour before finding that one.
Finish
No more tricks or gotchas here. Just put everything back where you found it. Refer to your pictures. Plug every connector back in. Double check them. The crank sensor is really hard to see and plug in. I filled the radiator with water for the first start and warm up just in case something leaked. It makes less of a mess and saves money if you have to drain to fix. You can drain the radiator later and pour in fresh 100% antifreeze.
