If you're not pushing any harder, just leave well alone, I wouldn't even touch the seals (main seals etc...) - unless you buy the OEM PSA ones and have the CORRECT tools to install them, I've seen more issues after replacement than being left well alone. Just get yourself a lowish mileage late 206 block and swap over all the bits off your 306 engine so it fits. The rods are significantly bigger in the later engines - remember that "16v rods" are the same part as 8v rods, it's just that most 16vs were made later than the 8v, so the rods you'll find in a 2.0 8v 90 are the same as what you'll find in a 2.0 16v 110 made at the same date on the production line.
If you're not having valve spring issues, leave them alone. I'd always put ARPs in these days, but that's me - you say it blows water, that's probably why.
I've never come across an engine that has been apart (pistons out of block...) that runs as well as one that was built at the PSA factory - soon as you start taking them apart, it always ends in an engine that isn't quite as good as it was when it left the factory.
Head off, clean gasket surface thoroughly, new MLS Gasket (Victor Reinz preferably) and new head bolts (or ARPs..) and leave alone. Otherwise just have sump off, clean the gasket surface thoroughly and use DECENT sealant (not the £5.99 shit you find in Halfords - Loctite 574 is a good shout), set of refurbished injectors (new nozzles, calibrated up etc..), then replace all drive belt & auxiliary system consumables and it's a sweet engine.
That's my opinion though, others will differ for sure.
If you're not having valve spring issues, leave them alone. I'd always put ARPs in these days, but that's me - you say it blows water, that's probably why.
I've never come across an engine that has been apart (pistons out of block...) that runs as well as one that was built at the PSA factory - soon as you start taking them apart, it always ends in an engine that isn't quite as good as it was when it left the factory.
Head off, clean gasket surface thoroughly, new MLS Gasket (Victor Reinz preferably) and new head bolts (or ARPs..) and leave alone. Otherwise just have sump off, clean the gasket surface thoroughly and use DECENT sealant (not the £5.99 shit you find in Halfords - Loctite 574 is a good shout), set of refurbished injectors (new nozzles, calibrated up etc..), then replace all drive belt & auxiliary system consumables and it's a sweet engine.
That's my opinion though, others will differ for sure.
