I stand corrected... Forgot about the displacment formulae regarding the rotary. :P

I may behaving a blonde moment but by the sounds of things, you are finding oil in your radiator and water in your engine?

A lot of people have apprentices working for them and like my Seargent used to say: "theres no such thing as common sense anymore." I do agree.

The best thing you can do right now, is pull your sump off, look for evidence of water. If you find sum then leave it out in the sun to dry, then shake it a bit and blow it with compressed air before drying it out in the sun again.
Flush your radiator out with degreaser (i love my castrol solvent based degreaser mixed 1 part castrol with 5 parts kerosene, enables it to penetrate thick oil buildup) and use a pressure cleaner to flush it out- and do so THOUROUGHLY.
Put in some engine oil maybe a semi-synthetic to bed in the new sump seal. After run-in change to a fully sythentic. Put in some coolant mixture, making sure the engine is running as you put in your coolant- eliminates air bubbles.

See how you go with that. Depending on how bad your smoke is, it may well be just a bad engine tune or a dirty MAF sensor or O2 sensor. DO NOT use a degreaser or contact cleaner on the MAF sensor, use a special MAF cleaner bought from any decent Auto store.

Hope this helps mate.

If u stayed under the increase then you are fine legally. Basically u need to know what year car was when your engine was removed. Usually its marked on the engine itself but if its a rotary then im not sure... Unfamiliar with rotary specifics im sorry. A good indication is whether or not the donor vehicle had one. If it did, chances are its madatory.

Its the logical thing that makes sense, and we know how the Gov. love to be logical :D loL!

Im with Tommo... EGR? get rid of it. Breather for the head and rocker cover? Just a small filter of some sort.

In what ways do u mean your motor is new? Has it been rebuilt? Or have u bought the engine second hand?

If your filter didnt have an O ring arond it, you would have a giant puddle of oil. As with your turbo, the engine would be blowing smoke to.

In the case of IF it was rebuilt, then it could be possible that whoever cleaned the engine pieces may have done so with water and when it was put back together it still had water collected? I have seen it happen a few times before... Just a thought

It will depend upon which state you are in. Different states have different standards for blueslips, but by the sounds of things you are in NSW. It goes off the year of manufacture of the engine and not the vehicle itself. My 1200 coupe just passed it bluelsip last week and it needed 1, but thats because i had a CA18 inside it.

Google is your friend mate. :)

Is the car road registered? Depending onw hich state you are in, different laws apply for each. In NSW you cant have side intrusion bars, but i THINK for CAMS you do need it. Removable ones are a grey area.

Contrary to popular belief, bolt in cages are no less stronger than welded in cages- in fact they last longer without cracking out. Cracks usually form around the welds themselves as welding actually reduces the strength of metal. Welded in cages are classified as chassis modifications, hence the reason why you cant get the car registered in NSW. Bolt in cages are able to be engineered.

Hope i have helped

If u hadnt told us it was new id be inclined to lean in a warped head/blown head gasket area... Either way, water in your oil is troubling to say the least...

Its only a 1.2ltr with a turbo intended for a 2ltr engine... it will be laggy. Getting properly tuned though will help minimize it :P

About 300Nm correct? im a little rusty... That means i definetly need to upgrade the axles as well. Any suggestions compatible with the 9"?