I have no clue when I need a rebuild (my father tells me whenever the engine stops working)....so, i would like to know what conditions are needed to warrant a rebuild of any type.

whenever i change oil, i get MaxLife put in (i got straight 30 oil this time though)...

leaks onto the heat exchangers like a waterfall (smokes like crazy)
**could be the seals the VW guy put in for me, will re-do if necessary...nice guy **
will continue to leak until i pour one or two small STP containers of the "oil treatment" AKA "ring sealer" with the oil....hasnt leaked a drop since

engine runs good when cold....~1000RPM (idles @1500-1800 RPM when warm)

2.0 heads need stud work....but seem to do okay. (don't know ANYTHING about valve adjustments or whatever )

anything else?

you may need a rebuild if:

you have low or inconsistent compression

leave a smoke screen when you let off the gas (worn valve guides)

hear some awful knocking noises

have consistently low oil pressure

etc.

Tim covered all of the important tidbits. as for leaking, your valve cover gaskets probably need replacing or your pushrod O rings. all can be done while the engine is in the car. Don't put additives in your oil. 30 wt may work fine, but I would try 20-50 weight oil. I had my old 1.7 that was pretty smoky when it got hot, it was run with 10-30 oil. Changed the oil to 20-50 and a lot of the smokiness (and the oil light flickering at idle) to stop.

Well, it stopped until a valve snapped off the stem and I blew piston chunks all over the car that was tailgating me. Heh, you should have seen him stomp on the brakes!

Another clue: Your valve clearances consistently shrink every time you check them. Keep track of which ones are tight and which are loose every time you do an adjustment, and if you see lots of movement in only one direction (especially shrinking clearances) then you have a pretty good idea that Something Is Not Right--for instance, the valve could be "tuliping" and getting ready for the head to pop off and bounce around in the combustion chamber. (Before blowing a hole in the top of the engine.)

--DD