Rebuilt the engine today. Pretty straightforward. I like the way you time it on the chain links. I set the crank a couple of teeth before TDC so that the pistons wouldn't be anywhere near the valves. Set the cams with the lobes on No4 at about 1 o'clock and 11 o'clock. Much easier to time up than a belt.
The only thing I didn't like was the tensioner. As I bought the chain kit a few years ago, I had the old style twisty thing. I tried to release it by pushing on the tension arm like it says in the Haynes manual, but I couldn't be sure that it had popped out. I tried at least 10 times and took the tensioner out to see but on a couple of occsasions it was still latched. So I tried another method. I put a 24mm spanner on the exhaust cam and wound it backwards and forwards so that the chain itself pushed it back. After a few wiggles of the camshaft, I could feel the tension increase slightly by trying to wiggle the tension arm. I tried this method more than 6 times and it had released every time I took the tensioner out. I hoped it had worked the last time that I did it, fingers crossed.
Anyway, fitted a new set of spark plugs, as I already had them, (and the ones in it were the originals), and turned the key about 5 times without starting, just to prime the fuel rail. Then it actually started first time. I must say I was a bit surprised. It was rattly until the hydraulic tappets filled up, but then it sounded ok.
As for photos, I didn't take any - sorry, but the priority was to get the car running as soon as poss, as my daughter in law is away with work tonight, and had to take the other car (company car).
Anyhow, pleased with the result, I made a decision on the way back home (about 5 - ish) not to put my boot full of tools straight into my garage, but to do an oil service on my car as getting the correct tools out of the garage takes time. I could work from the back of the car and put the tools away tomorrow. So off came the whole undertray (I find it easier than jacking it up so high to be able to drop the access flap - its only 10 torx screws and 4 stud rivets to get the whole tray off). In went 4.5 litres of Dexos 2 and a Mann filter.
Then as the undertray was off, and it was a sunny evening (but windy) out came the factory fill of gearbox oil from my M32 and in went Fuchs Sintofluid 75W-80. Funny thing is though that out came 2.3 litres. I put in just over 2 litres when it started running from the level plug. (And the car was dead level). Wish I'd checked the level of the factory fill before I drained it.
Maybe they overfilled from 2008 (or earlier) to help that bearing next to the 6th cog, or maybe they just got mine wrong in the factory in Poland? Anyway I put another 100ml in so as to split the difference.
The oil that came out was dark, but still obviously red, and no metal bits other than a few tiny specks which I would expect after the first draining.
Hopefully I'll stave off the dreaded M32 failure as I've got none of the symptoms. The only odd thing was that recently only when the box was stinking hot the sideways movement on the gear lever felt a tiny bit sticky, but not much. No backward movement of the lever in 1st, and no grinding noises.
Then again, I've only got the 120bhp version, and it's not chipped, and it's driven mostly like the way a granddad drives (my boy racer days are behind me now) so the box has had quite an easy time so far.
Thanks to you all for the help that got me through this. I like this forum, so I'm not going away!
Bungle.