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4 cylinder head code# for 2002

Hello everyone, this is my first submission.
I have been enjoying the list for a few weeks now.
I hope someone can help me with a code related problem.

Here's my situation:
I am in the process of putting an engine in my 76 2002. The engine
to be used came from my donor car, a 77 320i, obviously with the E21
head. The parts to be used from this engine are the block, including
the pistons, crankshaft, oil pump and rocker arms and the camshaft.
The other engine in the equation came in the 2002, just purchased 2
weeks ago, thought to be a 76 2.0 with the E21 head also. The whole
upper end of this motor is hopefully going to be used with the rest
of the 77 2.0 except the camshaft. Two interesting things arose once
pulling the engine, the year stamp on the block is 1970, a little
older than expected. The other is unexplainable by me and where my
question comes in, the head is not coded 121, E12 or E21, it's coded
118. I have no knowlegde of this head code # and would love some help
concerning it's origin. I still hope to use this head on the 77 block,
but thought I was dealing with an E21 head. Can I still proceed as
planned?
Any help would be greatly appreciated.

Question on the same project. I am also putting a 5 speed in the 2002.
I know I need a shorten driveshaft based on the length of the tranny.
I was wondering if the driveshaft from a 320i with a 5 speed would
work, I already have this from the donor. I read an article in european
car where the author stated he was lucky in this situation because
his transmission came with a 5 speed driveshaft from a 320. I know
I would still have to shorten the linkage, but it would be nice to
already have the driveshaft.

On a slightly different subject, is there a way to distinquish
externally a tii engine block?

Lastly, I am creating a web site to publish the completion of my
2002, including an interesting 320i dismantling. Just wanted to extend
an invitation to the people who would truly enjoy it. I hope to have
it up by next weekend, already in progress. I will submit to announce
the completion of the site.

Look forward to hearing from you all. Thanx in advance.
Hope to see you at Ofest!

Sincerely,
Richard Beebe
BMW CCA National Capital Chapter
85 735i
81 320i
77 320i(now a donor car),
76 2002
78 928