Mortlach

Au contraire Rich. I was unfortunately suggesting the possibility of a serious issue. If the FRM walls are fooked then the rings won't seal properly, resulting in the smoking pipes as the oil escapes. This is what happened in my case a few years ago. The engine ran 'fine' with its smokescreen for several thousand miles before it began to weaken. I only got the smoke on hard acceleration, but even when driven gently the oil was pissing out at an alarming rate. IIRC around 1l every 2 - 300 miles depending on my enthusiasm.
Good advice from the others on here. It will be a massive ball ache to try and pursue the builder. Just run it whilst keeping an eye out for a replacement - it might last for a good while yet if you can put up with the old smokey diesel mist. Have you spoken to the nice chap you bought it from? If the rebuild was under warranty did he try do anything about his 2K freshly overhauled smoking car?
Good luck with it

BenRNBP

I did see a couple of re-sleeved blocks on eBay the other day, both from the same seller who seems to know what they are talking about.

http://www.ebay.co.uk/itm/Honda-S200...-/141887176355
http://www.ebay.co.uk/itm/Honda-S200...-/141887133453

Might fit a longer term recovery plan depending on what you decide to do

Nick Graves

For a fraction of the cost of legal fees (remember Jarndyce v Jarndyce) you'd be better off getting an unopened engine from the inevitable winter-diesel hardparked S2000 and dropping it in.