(T) Oil leak, tappets, now engine whine and oil burn

My problem started about a month ago with oil loss. This appeared to be not too bad and the level never dropped too low (no warning light or dipstick probs). 2 weeks ago tappets started so I immediately put it in to a garage. Sadly they were a rubbish garage and did nothing at all so after a week I took it away from them and drove it to another. This was a ten mile drive. Toward the end of the drive the tappet noise had worsened and an additional high pitched whine had developed. I suspect this was due to the oil that was leaking from the cam shaft onto the cam belt. In addtion, apon arriving at the garage, smoke was starting to billow from under the bonnet. When I removed the oil cap, smoke was billowing from inside and there was the smell of burning oil. not good!

The mechanic told me something about cracked seals inside the engine and recommeded two options. Ditch the car altogether at auction or look for, and then pay him to fit, a replacement engine.

Any advice upon what this problem actually is and whether these are sensible courses of action would be very gratefully received....

maybe I should add that my Punto is a 1.2 R-reg 60 and it's done 60k on the clock. Its in otherwise great condition and has had regular 6 month services all its life... I can't understand how this problem could have developed!

just plain bad lick im afraid happens all the time when you own a fiat

Has it always had water in it?

Err... yep - i think so. Water hasnt been lost from the radiator if that's what you mean?

Any idea just what the problem with my Fix It Again Tomorrow could be?

thanks again.

ok - so I got that wrong then..! The whining noise was due to the cam belt cover coming loose and scraping against the belt/shaft. It came loose because at some point in the past it had been glued on (...?) and the overheating of the engine had caused it to melt...

As a result of the overheating that occurred 5miles after driving it out of the garage, I checked the fan and radiator (both not working). In my book, this probably means a dodgy thermostat/water pump.

Has anybody else had similar probs? I'm gonna try to test thermostat and pump and replace them now...

of course I've still got tappets and leaking oil (albeit more slowly after sealant was added)... what a headache!