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Short setup: My wife and I have had this 05, "bare-bones" S60. My wife named "him" Klaus. ("He" started out as her company car.) Once the title was transferred to her, we couldn't always afford the regular maintenance, so I was (sometimes in-)frequently doing oil changes myself. I was careful to use the correct weight of oil, but, whether I was doing the change myself or taking it to the "Quicky-Change," I mostly used synthetic blend, but sometimes non-synthetic oil. A bit more than a year ago, I had to have oil sump rings (or something like that; I've been looking up a lot of things, today, so they're getting a bit jumbled in my head) replaced. Since it was around 120000 miles, the dealer recommended the 60000 mile timing belt replacement, while they were in there.

So, I was a bit overdue for an oil change, but my teenager is on a fall break. It was convenient to let him have the car for the week to get to and from his band camp, and then I was going to have it in for maintenance next week. As he and his girlfriend were on their way back into town from a band function about a half hour away, the car stalled while he was sitting at a red light. I go out to help, and it turns out that there is no oil on the dipstick. Suspecting an electrical issue, I pour a couple of quarts in and try to jump it. When that doesn't work, I call roadside assistance and have it towed to the dealership where I'm told that the engine is seized. The tech was able to break it loose and get it to start, but it now sounds like a diesel.

So, I have a UK Haynes manual on the way, but I'm curious if anyone else out there has run into this. I'm capable enough, but I'm having trouble finding all of the parts (piston rings, bearings, possibly internal seals) that I would need to rebuild. I can find internal gaskets and seals for external parts like intake and exhaust manifolds, but I'm concerned that, running the wrong oil, I've got bad bearings and rings.

I've found an engine about 20 miles away with 90K on the clock for only $150, but the car it's in took a pretty hard hit to the front. It's also missing the intake. There are other options within a daytrip to pick up, but they are $500 and over. I've contacted the salvage yard with the cheap engine, but it's Saturday night, so I won't hear anything until Monday.

My concern is this: which engine is the lower risk?
 
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