Hang in there! It seems like things are beginning to sort out on your favor.
Back to the people at Loew's, did they sell you the car and engine? Do you have a contract? What soes it say? "we have sold you a car that won't run".
I still think you should have an attorney, the BBB and the Attorney General at least write these guys a letter. It can't hurt and I think you'd feel better.
91 300E 120K
90 300SE 275K (sold)
92 BMW 525iM 120K
90 BMW 525iA 175K
85 300D 175K (sold)
84 300SD 245K (sold)