Ok so I'll start from the top:

Last year I hydrolocked my 86 4runner in a stupid move that ulitmately led to a rod through both sides of the block and the starter. This happend in Dec. on my way home to Klamath from Medford after christmas break of 2008. Long story short I had to replace the engine at my girlfriends parents house 80 miles away from my house in Klamath. This led to deciding to get a long block. After much research I went with a company call Oregon Engine Rebuilders in Sandy OR. I ordered their "super stock" 22re that comes with a new casting high flow head, OS intake/exhaust valves, new pistons, new rockers, etc etc and some RV style cam. This was a cost of about $500 over the price of a standard rebuilt motor but it was worth it too me to get a new head and a little better power. Well I placed the order and recieved the engine within a couple of weeks with a full gasket set and assembled as a long block with the timing components installed.

So I got the engine installed and everything was great. It ran great and drove great, the extra power was nice and I was pulling decent gas mileage from about 18-22mpg. All was great for about 9 thousand miles and just over a year.

At that point one day when getting ready to leave school (OIT) I start the 4runner up and drive maybe 25 yards when suddenly the engine starts making a horrid noise like a valve tick from hell or a rod knock. So I instantly shut off the engine and coast to a stop. Well long story short I pull the engine (that I just put in 9k miles ago) and discover the #4 intake valve bushing/seat fell out of the head and broke apart. Some of the valve seat got into the combustion chamber and proceeded to get slammed around by the piston into the cylinder head.

Here are pics of the damage:

 

At this point I am annoyed that the motor failed at such low mileage but understand that mistakes happen and mechanical failure happens. So I contact OER and per their lifetime warranty they offer to fix the engine but want me to pay for round trip shipping
($220). Well I don't have much money and explained to them why I did not deserve to pay for shipping when the damage was no fault of mine and the mileage was so low. So they do the right thing and pay for shipping round trip plus give me a set of new gaskets. 2 weeks later I get my engine back (as an assembled long block with timing components installed). At this point I was very satisfied with their service and response time.

So I get all the stuff transferred to the new engine, get it all installed properly etc etc. So I prime the oil pump by hand, make sure that oil is getting to the cam, turn the engine over by hand a few times, adjust the valves, and go to start it. CLUNK CLUNK and then it turned over fine but did not start. So I though weird whats going on. Run through everthing and it all looks good so i set the engine to TDC by looking at the #1 piston and putting the balancer at zero and pull the dist cap. It's not pointing at #1 so I take it out and put it in to #1 hook it all back up and go to start it. It will not start.....

Well now I get suspicous so I pull the valve cover and put the cam to TDC......look down at the balancer and it's pointed at 3 O'clock. Not good. So I pull the balancer and confirm that the balancer has not slipped and wait until morning and call OER. I tell them that it appears the timing chain jumped several teeth and whats going on. They do not believe me but after 20min of chatting with them they agree that the timing chain must have jumped. So I set the cam to TDC and pull the timing sprocket on the cam. Then rotated the crank to TDC and reinstalled everything. Go to crank it...........starts first shot but runs kinda bad. I adjust the timing, let the motor warm up, turn it off, adjust the valves, change the oil etc and start it again. Still runs crappy.....like it's running on 3 cyl. so I pull each spark plug wire 1 at a time. On number 2 it makes no difference how the motor runs.......weird. So I check for spark and all is good. Then I check compression:
#1 - 125
#2 - 0
#3- 75
#4 - 125

Obviously something major wrong so my buddy (lemonfresh) comes over and we take a look with a bore scope. Obvious damage to the pistons from the valves. So I pull the engine (again!) and pull the head off and here's what I found:

 

So that's where it stands as of now........not really happy finding that they did not replace the piston or the head from when the valve seat fell out.

My couple of hypothesis:

1- they machined too much off the head and did not use a oversized head gasket

2- the timing chain was not in spec

We'll see where they want to go from here.........

 

Good luck man sux to hear about this but hopefully they do the right thing

 

u seem to know alot about motors to mee bro so i say get ur money back and rebuild one urself...good luck bro i hope they own up to their lifetime warrantly

 

is this a new thread about the same engine? i could have sworn I saw something from them before where it dropped a valve, or the guide fell out or something...

EDIT: also that damage is not really the worst thing ive seen, ive ran pistons that had marks like that, just make sure there are no tiny cracks. I didnt read the whole thread so if thats supposed to be a new warrantied engine, then I would throw a fit get a new one and never reccomend anyone to them again.