Engine disaster!!!

[malkie1000]

Absolutely perplexed. I have a 2002 (year) Rover 75 club SE with 1.8T petrol engine. It's gone just 33000 miles and regularly serviced - only does long distance trips and I drive carefully. Last serviced just 40 days (1000-1200 miles) ago. Engine cut out at 70 mph and siezed. Metal probe shows that no. 3 cylinder is completely shot. Sparkplug badly damaged and water in oil. A new engine/ replacement is needed. Anyone else suffered this or is it a 'one off'? Cambelt is still OK)? What can cause this?

I can source a completely new engine very cheaply and think it would be better to go for that than refurbish this one. Certainly labour costs would be less than a rebuild... Any advice on this point too?