They want to give me a new motor

[Black02GT]

I bought a new '02 GT in October. Right away I noticed the smell of burning oil through the vents. I made a couple of medium range trips and the smell was still there...3 weeks and 1600 miles later! I took it to the dealer close to where I work (not where I bought it) They informed me that a head gasket was leaking. They removed both head gaskets, checked for cracks or warpage, decarbonized the heads and pistons, and replaced all fluids. The smell was less than before but still present.

I waited a couple of weeks in case oil was sitting in the intake galley or somewhere else. It did not go away. I took it back to the dealer I bought it from and they called a Ford engineer out who said to fix it again. Then a T.S.B. (Technical Service Bulletin) was issued that stated the heads may not match up to the block.

Now the dealer wants to install a new engine in the car even though I demanded my money back or a new car. I have contacted a lemon law attorney; they are looking at the case right now.

This thread is two-fold. 1) To alert everyone of what I have gone through so far in case this is happening to other 4.6 owners, and 2) Does anyone have any advice on having a new motor installed and how it will effect the value of the car? I'm totally against it.