Overheated-head knocking: need opinions on what to do.

[Brett Goetz]

My 1988 5KCST overheated do to the small hose that comes out of the 
thermostat housing.  Now the head is knocking.  The car has 177,000 
miles on it and has no other problems.  Here are my questions:
-What is the most logical source of the knock: lifters, valve?
-What about the turbo, main bearings, water pump, etc.  Are those likely 
damaged as well?
-Although the car is in excellent condition, I'm considering getting a 
"newer" type 44: 1989 and up, simply because the driver safety rating is 
higher and I want to give this to my daughter in a couple of years. 
This might be the excuse I need. I could transfer or save the parts from 
this car for a new one.

I really need your help on this one guys.
Thanks



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