Here's the new paint in the engine bay.
So I eventually got the engine back together (the previous tinkerer had cut most of the wiring harness and damaged/lost dozens of pieces). SLS worked, so I drove it around the block and it smoked enough to kill all the mosquitoes in the neighborhood.
Bottom end problem had me on the lookout for a new engine. But after finding no decent 617s I wanted to pull the trigger on I settled on a 603. Ended up buying a 1987 300TD which was totaled (149,000 miles). We just pulled the engine today.
Impact was to the driver's front wheel. It broke both engine mount arms and smashed the starter. It was hilarious when I tried to start it and my brother in law started yelling because the starter was sparking, jumping around and smoking. Here's a shot of what's left of it.