Here's a thought. If no magnetic particles are found in the oil filter, save a bundle and simply replace the variocams (used, they are wicked expensive new) cam to cam chains, ramps and tensioners if your feeling spendy. Drop the pan and use a wet vac to suction out the bottom of the block where the oil drains out of the heads, trash collects there. Then button it up and drive it. You have an oil filter. It always works unless the oil is thick enough in winter to push through the bypass. You live in a warmer clime and it is summer. The absolute worst thing that can happen is your engine could fail, and you are assuming that it has failed already. Your engine does not appear to be toast and you don't need to drop a bundle unless you want to. If you do want to drop a bundle, go with a newer engine, upsize dramatically, you won't regret it. As a bonus all the snooty S owners will covet your car if you drop in a 3.4 liter.
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