Sounds like liner moving in block..do a search on rover V8 liners moving..unfortunately a common fault especially if the engine has been overheated at some point, sorry to be the bad news person.
They can be fixed with a new set of liners(top hat) and bored out to suit pistons, however if it were me I would get new pistons and make it a 4.6.
I have had 2 3.5V8's converted to 3.9 using new liners and bored out, but you need someone who knows what they are doing with the Rover V8.
Brad



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Does this mean it more than likely has been overheated, or could it be down to mileage and something else, the engine has 226000 kms on it.

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