Did you delete the engine oil cooler in this installation? I'd really like to have a postmortem inspection to determine a cause before replacing old engine with new, or at least re-install the oil cooler. If the location next to the radiator won't work, you could try a 124 oil cooler, which goes in front of the driver's side front wheel.

I also think there is a good possibility you've got a fuel problem. Would be worth moving the injector to see if the problem follows. If it does not, I'd rebuild that delivery valve, and after that swap in a known good injection pump.

I really like the ideas of checking the oil filter for metal, pulling the lower pan to look for metal, and sending a used engine oil sample off for lab analysis for about $40 or so.

__________________
Respectfully,
/s/
M. Dillon
'87 124.193 (300TD) "White Whale", ~392k miles, 3.5l IP fitted
'95 124.131 (E300) "Sapphire", 380k miles
'73 Balboa 20 "Sanctification"
Charleston SC