Hey Guys.
Hope some of you more knowledgeable guys can help wth this one.
Got a 1.6TD engine from a MK2 golf van , which i want to transplant into a MK 1 VW caddy. There does not seem to be much compression between Number 2 and 3 cylinders , so suspect a possible blown headgasket ?

.
The question is , when i take the head off to have a look if it is not too serious , i was going to lift the whole lump out and have it reconditioned.
I was thinking Head cracktested and skimmed , bores honed , or even bored with new rings, and the crank journals looked at. I was wanting to end up with a good solid engine for possible future tweaking on the IP and the turbo but not going too crazy.
What would you fellas reccomend or have i covered about everything with the above. Just thought it was an ideal time to get it all sorted together.
Thanks in advance for any help and ideas.
Cheers Kirk