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Shit this is no good John. Out of the LS or TD option. Id go tbe Td. Only because its pretty much a swap over. Being so fresh in my mind im more than happy to help out here if this is the way your going to roll.
If its the head, it needs to come off so i would check out the pistons while your at it. Which you would anyway no doubt. Price up a head and see if its worth it if the pistons are ok.
Looks like which ever way, being a repair job on the zd, a td conversion or ls conversion, its gonna get pricey.