Update:
Once the Motor was all installed, I started its 1000km "Run In" but was faced with a massive oil leak from the back of the engine.
Looked to be coming from the tappet cover gasket ( was brand new one i installed ).
Removed it and resealed it on half moons again.
the leak persisted.
After some research, Happened to find a post on E46Fanatics of someone who experianced the same issue where they had massive oil leak from top after receiving their Head back from Engineers.
Turned out to be this Oil channel screw which was probably removed by engineers and not tightend when reinstalled.So those of you planning to Do some head work, Make sure you check this Before you install. It was not easy to remve and re install this. I had to cut 1 allen Key to allow it to fit in that gap, Then i welded another allen key to the other End to Increas the Length.

But 1000km Later on Motul 5w40 Oil, and not a drop of oil was used. no Glitter in the oil or oil Filter.
Drained the oil and Put in fresh oil and Oil Filter.
Currently done total of 2500km and happy to report that all is in order.
There is a slight Lifter tick but nothing That rings any alarm bells.
Next on the cards will be to rebuild the Vanos.
I still have the X8R kit which i bought a long time ago. So will do that soon.
Hoping to have the Paint work Fixed up in this year too. Basically the issues mentioned In previous post on the thread.
bonnet Clear started Fading abit since then. but clearcoat looks savable.
Roof will be repainted
Passenger Side rear quater will be sanded down and Repainted/Blended ( might do whole side. ).
Pics/updates to follow