Ace - you are spot on that the engine itself is great and not the problem it is the rotten external cooling system in particular the thermostat system that causes the the engine to get really hot then showers it with cold coolant causing thermal shock to the innards of the engine - most likely just after the head gasket has blown.
I have been told that local used car dealers remove the thermostat from local 1.8s for sale so that they do not die when in their care and then reinstall when sold.
There are mods to the cooling system that work but the problem is finding a good engine to do them on. MGs and Lotus have the same engine and suffer a bit as well but not as much.
If I were you though, why not try to get a diesel as it would provide a lot more peace of mind.
Garry
REMLR 243
2007 Range Rover Sport TDV6
1977 FC 101
1976 Jaguar XJ12C
1973 Haflinger AP700
1971 Jaguar V12 E-Type Series 3 Roadster
1957 Series 1 88"
1957 Series 1 88" Station Wagon
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