I would have loved that car. Mid 1980's 2.7L SC will be my weekend warrior (hopefully after about another 5 years from now.) Were the gaskets and carbs (Zenith/Solex/Weber) the only thing wrong with it (why is wasn't running for more than a few minutes)?
This is currently my other project: Stock & very original, matching #'s 914/6 that came with the 2.0T from Germany. Special tools, galore! (i.e.: 46mm crows foot?) I'm hoping for 125hp stock on a 1,900# body. I've rebuilt the rack, entire brake system (pedal cluster to caliper cylinder), powdercoated & rebuilt suspension, full rebuild on the tranny, and am waiting for pistons & cylinders to come back from the machine shop. Rebuilding the Weber triple throat carbs now...
The last year, IIRC, was 1979 when they still used the full magnesium cases for the 2.7L. They were stressing the limits with the displacement, while the dilaver head studs werent all that great either (they were steel or a composite) and pulled out under a lot of stress & heat. Another reason for improper cooling was the fan: it only had 9 blades as opposed to a more efficient 11.
The mechanical chain tensioners are fine, but fail after use & fatigue. I plan on doing your upgrade to the hydraulic tensioners when I get closer to that part of the build.
Helicoil and case savers are a PITA. I assisted a friend once with a spark plug...yea, not again.
In this case, I would have preferred the #2 to the "Deuce", too!
Pete