For anyone interested in following this, I visited YTO 80Y (or rather a pile of stripped parts) this morning.
I was showed the nature of the piston failure - rings that had overheated due to oil starvation and begun to melt, then scoring the liner. The head had also become burnt and damaged - though not irrepairably. The cause of the oil starvation was, as anticipated, a clogged oil strainer - it looked like it had dredged the Thames, full of blue hylomar, instant gasketing (used in addition to the gaskets ???), and red paint - no doubt from painting the cam covers.
Incidentally, the technician told me that these were not, in fact, SE pistons and liners. I am no expert, but from the technical diagrams he showed me in the service manuals, he appears to be correct. Whether they were sourced and fitted having believed to be SE ones I don't know???
Also, the rear suspension geometry problems seem to stem from the shims either side having been omitted when it was all put back together - thus making correct adjustment impossible, and explaining the chewed rear tyres.
At the front end, all appears well bar a missing fan.
So then... biting the bullet and letting them get on with the repair and rebuild... the only choice realistically from this point I suppose, and they may as well stick a new clutch in as well while they are at it - I await the quote for the work nervously...
I am also surprised to learn that Sportomotive has been fielding phonecalls from others regarding the car. No doubt the personal investment many put into it inspires interest - perhaps it will be running again soon in the not too distant future.
Cheers, Mark