Hi SELfour50 - I guess I should call you by your proper name by now, but I am following Internet practice by utilizing the avatar name, rightly or wrongly. Anyway, Cam, a bit of stuff I know about 6.9s.
It is my firm opinion that you can do very little by way of tuning or hotting up the M100 engine. The engine is designed to be a 'Torquer', and it fulfills that task admirably. It is a cruiosing engine, but it still has a definite power band that starts at about 2500 rpm and probably continues on up to about the 4000 mark.
The engine has two problems when it comes to getting extra horses - Air IN and Air OUT. The throttle body is the same size as what you will find on the M117 450 engine or, for that matter, the same capacity as the 3.8 or 3.6 litre V6 Commodore engine. Thus, intake of air is severely restricted. Just try and compare that with some of the Yankee engines - in comparison, their intake capacity is huge. You can slightly increase its volume by machining, but it is minute. You then also have the further problem of the intake manifold being somewhat restrictive and a bit of porting and polishing is possible, but again you will be limited as to how much.
Next problem - exhaust manifolds. Their capacity is severely restricted as far as dispensing of exhaust gases are concerned, and there is almost no scope for increasing the exhaust flow. Extractors may help a little, but even with those I would have some reservations. Again, if you have a look at the Yankee product, there is simply no comparison - everything is huge and free flowing.
So, what can you do to make it more competitive ? Firstly, change the diff ratio to one from a 450. That WILL make a fair bit of difference. You could consider a 280 unit as well, but I suspect that the engine will rip it to pieces in next to no time. Secondly, weight saving - don't know how much and where you could start a weight reduction programme, but weight is a penalty for the 116 body. Just imagine if you could get it down to 1500 kilos - it would become a 'blaster'.
Thirdly, engine management - a modern fuel injection system would probably work wonders. Cam in Sydney (Mercules) was going to look into that for me, but those plans have been shelved for the time being. Possibly one could approach him again - he is very smart and cluey, and it would probably pay to talk to him. I am hoping he will be at our concours/barbecue - he tells me, by the way, that he's got that Turbo Nissan pumping out 399 horses - can't understand why he cannot find one more ! I well remember our trip back from Bowral - he hurtled past Michel and myself doing a 100 (kilometers) and he reckoned he had an extra gear to go. Scary
but impressive. Anyway, I mustn't digress.
I do know that heads can need new exhaust valve guides at about 220k. kilometers. With ChrisP.'s 6.9, the Engineering Shop advised that the heads should have both Inlets and Exhausts replaced. I went with their advice as I was not sure of the mileage, but also it was prudent to do the job seeing that it takes a fair amount of work to R & R the heads. On Gleaming Beauty, oil consumption can probably be put down to the fact that the rings are original on 380k. engine. Oh, by the way, I used original MB head gaskets - the only way to go. Reproduction items made locally are too thick and will reduce the compression ratio.
I hope some of this information helps. Any further questions, don't hesitate to ask. Regards Styria