If you're going to go v8 or really any swap now with all the tax, I'd most likely just get rid of the car and start with something else. Unfortunately, I have a mate with a surplus of ls and Ferrari/Maserati v8's that's always tempting me FFS lol.
If you can get a clean, tested neo from Japan for $3500 these days, it's probably worth getting either way, hard not to be skeptical at that price.
Otherwise probably rebuild the s2.
The best part is the aluminum replacements are also junk with a ton of casting flash threatening to break off. Only safe solution is toss and buy OEM new if in doubt, if the cage ever comes off BMW says to replace the whole part instead of putting it back together. Also only use the right oil filter wrench and only snug it down, never attempt to actually torque it once the cap is fully threaded into the housing.
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