Getting ED30/S3/Cupra engine and gearbox is simply a budget question.
A AXX or BWA would be much cheaper but regarding future plans a K04
engine would be the wisest decision.
You are right, my friend!
I agree with The Bruce - get a K04 engine in that engine bay ASAP, you'll not regret it. 
I am sure I won't. It's just that this car is my daily drive and I do not have much time to scout for the engine and to install it.
Sunset Red (6K6K) will stay up to date, mate. It's still available on the Mk.VII.
I am really, really happy for the future owners. I absolutely love this color (I might be subjective though).
But the down side is that there will me many more sunset red's on the road
.
And an update on the car's status...
This time with the removal of the cylinder head, I decided to have the entire engine investigated...
I decided to change the piston rings (I hope this is the English name, these rings are attached to the piston and lubricate the cylinder, create compression and, then removes the oil from the cylinder sides).
Once the mechanic removed the pistons he found some issues with the roller bearing:
So, another part that needs changing...
Then, I heard from the mechanic that was in charge of fixing the cylinder head. And the news weren't good...
First of all, he told me that without proper valve guides, the engine would not be ok and that by making some valve guides (like we previously did) would be in vain. The problem would reaper... So, I searched hi and low for valve guides that were made for my engine and did not require machining. Fortunately I found the valve guides I was looking for!
Well, that was before the valve guides arrived, that it.... When they arrived, the new guide lines were 3mm shorter than the OEM ones.
The mechanic said that this did not matter very much and that the valve guides might be ok. But, the valves had signs of wear and there was some gap between the valves and even the newly bough valve guides (the interior diameter was the same with the new valve guides). So the valves also had to be changed....
In total, on the cylinder head I had to change:
- valves
- valve guides
- valve seals
- roller cam followers
So, I was forced to go for a new cylinder head all together (1500+ EURO). At least, this way I can be sure the guides, valves, etc are ok. The new cylinder head will arrive Monday and after putting the parts together I hope not to have engine problems for at least 2 years or 1500+ miles on the track.
Unfortunately this hole episode was quite expensive and, financially speaking, I might have been better of with an engine swap. I did not find an engine fast enough and I really need this car asap because it is my daily drive. I also want to make the Nurburgring and Hungaroring October trips and I can't make them without an engine. I needed time to buy the new engine, to fit it, to make a few thousand miles with it before going to Nurburgring. This was impossible so I chose the more expensive and less powerful alternative. I hope to buy another daily drive sometime next year so, if engine problems reappear, to be able to make the engine swap easier and under no time pressure.
All the best!
