I began my rebuild when I did a compression test and noticed I had poor compression in cylinders 2-6 (about 142 psi, the bottom of the service limit). Cylinder 1 head 160 psi. A leakdown test showed leakage into each adjacent cylinder. Of course my engine also had the oil consumption problem (1 quart every 1000 miles) that every M54 engine has, which is caused by the oil rings which wear down prematurely (the M52TU used different oil rings which did not have this problem). There was also coolant loss, which I didn’t measure precisely.
Rent a torque plate from VAC motorsports: https://store.vacmotorsports.com/vac-engine-block-torque-plate-bmw-6-cyl-fits-s50uss52usm50m52m54s54-p1686.aspx
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