Garry, your photo shows a bit of light inside the square, so if that was corrected the bend may not be as bad as it seems.
I had similar damage on my S1 and I approached the repair in the following manner.
1. Measure from the inside face of the dumb-iron to the inside face of the other side where they join the front cross-member. Then measure the distance between the dumb irons at the front where they join with the bumper. I suggest that a tolerance of 3mm would be acceptable. Distrust chassis drawings - I found errors on Land Rover's 80" chassis drawing!
2. When you strip the front springs off, check that the holes in the spring hangers are in line i.e. all four holes on both hangers. I looked through one of the hangers and it didn't look right; so I made a steel bar which fitted firmly in the holes of one hanger. The other end of the bar, which was close to the other hanger, proved that the two hangers were out of alignment.
It is important of course to get this alignment spot-on, otherwise abnormally fast wear will occur to the spring bushes; the main-spring will twist and may break; wheel alignment will be affected and in the worst case will be impossible to correct safely.
A good chassis is like a good foundation under any house - get it right and all will be well; get it wrong and the problems will be endless.
If you would like a copy of an article I wrote on how I repaired my S1 chassis, send me a PM with your email address in it,
Cheers Charlie

