New, 1980 320i question

[lizard928s]

Hello ladies and gents.

I am more of a Porsche fellow myself, but awhile ago my parents needed a new car and didnt have a heck of alot of money.

So I did some shopping and found a 1980 320i with a blown headgasket.
It would start and run but I didnt want to risk a hydrolock, so I towed it home.
Cost me $450

$32 for a new headgasket, and a couple other gaskets, $80 for a new set of leads. and alittle other bits and bobs there, my mom had a great running and driving car. for a VERY small amount of money.

Now the engine has a fair amount of miles on it, and has driven great for awhile on this engine, but according to someone else (I havent had time to view it) the car is coming due for a set of rings.
This and the radiator is needing replacing.

Now I am good with a welder, tools, fabrication. You name it I can probably make it. That being said I really dont have much time for taking on a project liek reringing the engine.

That and with the rising price of gasoline, I am wondering if there are any diesel engines which either came factory for this car, or will bolt in with a few mods.
IE VW turbo diesel fro 1988 -1992.

I would rather pull the engine, flush the fuel system and convert to a diesel drivetrain than pull the engine, rering and drop it back in there.
Plus I can then set her up for running on biodiesel.

Any assistance would be greatly appreciated.