Doc, you sound like just the guy to clear up a couple of things (for me, anyway) on "rebuilt" Box motors.
What, exactly, would you say consitutes a "rebuild" of a Boxster engine?
On the air cooled 911s each cylinder was separate from the case, so they could be, and were, replaced as a set (along with the pistons) if wear or damage made the old ones unuseable.
I assume this is no longer the situation with the 986, since the cylinders are bored in the block, not unlike most other engines. Can a shop actually install new pistons in an engine block , or are the cylinders and pistons matched at the factory, such that it is not practical?

Patience is a virtue...
 

I'm completely confused by my first mechanic's diagnosis, the second opinion will definately be worth it. I picked the car and dropped it off at the new shop (who has rebuilt 911's and 986's).

From my inspection today
(1) no indicator lights are lit, originally my oil light was flickering
(2) no oil is mixed in with the cooliant
(3) cooliant level and oil levels are fine
(4) the car is driveable, but there is a faint clicking noise

However, with lower than normal compression in #3 (145psi) and #4 (152psi) that the rest (165psi)... I maybe suspecting something wrong.

I'm also suspecting the water pump, at the breakdown there was a squeel. I beleive this may have been the water pump becoming out of round.

It sits now til Monday, as there are a few porsches ahead of mine. I'm currenlty out $200 from the 50 mile tow and shop diagnostics.

If you do end up needing to replace the engine, consider a 3.2 from an S or a 3.4 unit from 996 instead. At least that way, it's an upgrade.

One of the things that has puzzled me about a "performance" car such as the Boxster is the lack of an oil pressure (O/P) gauge. That being said, has any of the "mechanics" checked the O/P? There are lots of things that will squeal (alternator, A/C compressor, water pump, etc) not to mention the belt. "Ticking" could be an O/P related problem and/or something internal. Remove the belt that drives the above components - does the squeal go away? Does the ticking go away? If it does, you can concentrate your search on one of them. Assuming it does not... do you have good O/P? Can you get the car on a lift? If so, use a long-handled shaft (i.e., screwdriver, etc.), place one end tight against your ear and probe the engine w/ the other - you can hear most everything going on inside. This should get you to an area close to the source of the ticking. Do this on top and from below.

Re a replacement engine (worst case senario), I would search for a salvage yard piece. My guess is that would save you thousands. These cars are not brain surgery so let's not get all "anal" about them - they are, in the end, an internal combustion engined automobile. Although Porsche has done a relatively poor job of designing/fixing the RMS problem, other than that, it seems to me they should be capable of doing daily service for 100K miles+ without anything but regular maintenance. What else would anyone expect out of a $50K car??.... I'll look forward to your report. :)

24 hours from Pickup
 

We'll I'm picking up the car tomorrow... all that is left is refiling the AC.

My NEW mechanic diagnosed the problem to a failed water pump, leaking cooliant reservoir, and failed AC pump.

The squeeling sound I heard came from the AC pump, the water pump had also failed so it was replaced. I'll post the final results tomorrow.

Needless to say this is far from a new motor...