Blown Engine

[the24case]

I recently blew the engine on my '03 325is. Currently it is the process of being repaired. I went to check up on my car and noticed that it was completely dismantled and had been been left outside. During this time period and weather conditions. Rust formed in the cylinders on the block. I voiced my opinion to the Service Manager and was informed that there was a "lining" or a "coating" on the cylinder walls and this would not create any problems. In discussing this will some other mechanics, I've been infomed that the rust could lead to the chipping of piston rings. Eventually causing oil to blow by the piston. Is the service manager feeding me a line of crap? Anyone have any imput? Thanks

[Mach 5]

There is a "lining", actually it is more like an impregnation, in the cylinder walls to reduce friction. The "lining" was never designed to inhibit rust and should not be relied upon to do so. I do not know if the block could be remachined to remove the rust, Bravarian Engine Exchange may be able to answer that question (do a google search for them).
On another note I would be furious over my good block being left out in the elements. If the block cannot be fixed to your satisfaction I would demand a new one.
Ben

PS. If it is very light surface rust a Scotch-brite pad should remove the rust, if there is roughness or disscoloration the block may need to be honed out.