Justin:

If it ain't one thing it's another -- the AC on my 300D seems to have given up the ghost -- I'm hoping for a stuck expansion valve or monovalve like my brother had last year.

As to the W116, those are lined bores, all you need (if you want to keep the engine) is to have that one removed and a new one installed and honed. However, I'd just get one of the junkyard engines and play swappo with the heads (as has been done to yours already anyway). Unless the yard one also has had water sitting it in, they are nearly indestructable. Ealier model cams are "hotter" than later model, too. A W108 cam would be even better.

It might guess you also have valve problems with 12 degrees stretch, or a dead cam lobe causing no compression on #6, unless you just blew the gasket and it isn't marked yet.

Those injectors will deliver 200 CC in 30 sec, but I'd not think that woud be enough to hydrolock the engine, I'd bet it was water killing the spark first.

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!