It took a while, but as an update, I appreciated all the ideas around insitu repairs, but decided that if I was keeping the car, I want to do the job properly, and if I was selling it , then a bodge repair is not fair to the new owner either...
I decided to keep the car- I do really enjoy driving it.
I pulled the old motor out and replaced it with a mates donor motor from a wreck he wanted the gearbox from. (Another 89 NA...) The new motor has 150k on it before a bus redesigned the front from the radiator forwards......- motor was unscathed.
New motor runs well- did a few other bits while in there that you would do replacing the motor- new waterpump, clutch, seals etc....
Old motor is on a shelf and when I get around to it, I will either sell it as is (runs well apart from needing the crank to be fixed but this is not a big job now the motor is out) or I will use it as a learning experience and pull the crank / big ends and sort it myself.
There is a few other things that I will do too- I used my original injectors as he ones in the donor motor had sat so long that they are now blocked. This will likely get done if the car starts to show signs of engine trouble in the future but I am not expecting that anytime soon.
It runs a treat and I am back to using it as my daily commter to work as well - thats 30km each way each afternoon to work and each morning on the way home....And atthe right time of year...Top down under the stars is fun...
Now all I need to do is learn how to do a proper respray.....
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