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while i admire the spirit of the folks advocating a do it yourself rebuild, a 240 motor is nothing to do for your first motor, imho. i am an advanced hobbiest with over forty years of car hobbying and i would not do it myself. the sleeves have to be pressed out with an 80 ton press. then new ones have to be pressed in. the block has to be decked after the sleeves are in and the sleeves bored to match the pistons.
this is to say nothing about the fact that if you have a broken rod you probably need a block.
the best thing in your case sounds to me like finding a running driving parts car with serious cosmetic issues. get an experienced diesel mb person to check out the motor for you... then buy the car and swap the motor. this can be done probably for the cost of parts for a re build not to mention the cost of finding a good block.
swapping a motor is well within the abilities of a slightly advanced neophyte hobbiest.
good luck
tom w
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[SIGPIC] Diesel loving autocrossing grandpa Architect. 08 Dodge 3/4 ton with Cummins & six speed; I have had about 35 benzes. I have a 39 Studebaker Coupe Express pickup in which I have had installed a 617 turbo and a five speed manual.  [SIGPIC]
..I also have a 427 Cobra replica with an aluminum chassis.
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