So thursday came and another stab at this thing,

out came the uber tool, its old as its got west germany on it. Must been made for the first M50's in the day!

Here it is bolted down on the head, i can see why you'd do it on the bench but i just couldn't help myself! Dans right its a pain on the exhaust side but can be done. i unbolted the air con pipes by the bulkhead, barely any gas in the system so no problem. Great bit of kit the tool though

Camshafts and buckets etc removed
Bang! head off, with the manifolds attached, it worked. So its 110% the wrong gasket. being a bit sad i have a 323i gasket in the garage left over from a nikasil engine i stripped. They're identical down the to numbers stamped on them
At first i thought look its beaten the fire rings out of round! but when i compared it to the other one they're identical. I'm going to put the gasket back on and turn the botttom end over and see if it hits the gasket.
With the gasket down you could run your finger round the whole bore and feel the lip of the fire rings sticking out

Nice honing on the bores still

Apart from this one which looks like its gone a bit rusty and been cleaned to me

Incidently its No.4 which has had the piston crown cleaned up which leads us onto the cylinder head

bodge tastic on the exhaust studs only about 4 out of 100 were tight and a fair few where half hanging out!

the head, looks ok by eye but you guessed it no.4 port is very very clean. Its had a tap or something wound through its spark plug hole. I'm guessing this was where the head cracked? The head appears to have unfettled chambers to my eyes but the exhaust ports look tickled like the inlets.
The receipt i have for the head is from Modus engine services in Langton Green, anytone heard of them? they are recommended by munich bellends
It reads pressure test, Failed. Weld head and fit new valve stem oil seals and re test. Pass
£635

Heres a nice split on the worst pipe to have it! on the back of the head.
So my conclusion is, an iffy coolant system cooked it. Then a pair of dickheads tried to fix it and made it even worse gave up then i the chump came along. Could it be as simple as correct gasket, overhaul cooling system where needed and this thing will go? I'm the only one who has heard it run, would the wrong smaller gasket really make it run a bit funny? it sounded like it was 1 or 2 or 3 pots short of a picnic. I think the lack of earth straps for the coils wouldn't be helping but i'm no expert on these.