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Hi, I'm looking to get some advice and knowledge on my daughters 2003 New Beetle, this car has the 2.0 AVH engine. It had a small coolant leak and she was supposed to check it every couple of days, however, she did not and about a month ago while she was driving the car overheated to such a point that the engine died in the middle of a very busy road. She said all kinds of steam, smoke or vapor was pouring out from under the hood, I had to get the car towed to my home and have someone take a look.

A friend of mine took a look and fixed the coolant leak (heater hose at the firewall was leaking). In addition, he told me that he thinks the block is cracked. So it has been sitting for about 3 months in my garage, a couple of days ago I pulled the battery and had a charge put on it, got it back this evening and started it up, took about 20 minutes but got it running. I stuck a running water hose in the coolant tank so it would have a constant supply of water. Immediately I noticed an engine knock that was not there before( I have done a lot of work on this car and know it quite well). I was very surprised it even started let alone run, I ran it for about 30 minutes, got the RPMs up to 3K for about a minute or so, there definitely was some roughness at idle and the engine knock gotten louder. I turned off the water hose, removed it and put the cap on the coolant tank. The coolant tank and water were hot at this point but no leaks were to be found under the engine or car. I let it run for another 10 to 15 min and the engine check light came on (I never did get a coolant light). I looked under the hood and it seemed steam or vapor was coming from the air filter housing and it was really running very rough at this point (like it was about to die) so I turned the ignition off.

I got my OBDII code checker and pulled 1 code P0301, indicting Cylinder 1 is misfiring. So at this point, I don't know if it is a cracked block, cracked head or blown head gasket or even a combination of them. Oil seems to be ok, no indication of coolant mixed with it, no white smoke coming from the exhaust. This engine has over 150K miles on it and the past 4 years I have done the maintenance on it faithfully, in fact prior to the engine issue, I had sunk $1700 redoing the entire suspension and front end. So I'm very reluctant to just junk the car. I have been pricing used engines but I'm not sure what is exactly wrong with the engine. Please give me your thoughts and advice.
 

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