Hi Tony,
When I was considering my engine options I initially stripped the Niki motor to use various parts. The crankcase looked very roughly finished and the gasket surfaces were not planar - maybe that is why it leaked oil. I was going to get it machined until I noticed many stripped threads. These can happen to any crankcase but there were three of them amongst the sump bolts alone and I doubt whether the sump had been off since the engine was assembled. I asked a local motor cycle engineer to have a look at it with a view to boring the crankcase to take larger cylinders. He commented that the alloy looked 'tired' and of poor quality. With loosening head studs another problem, I didn't argue and ended up buying a new 126A crankcase. It was deemed to be of better quality and the gasket surfaces were largely flat.
The guy who helped me rebuild the transmission made disparaging comments about the original bearings and said that the Italian replacements were much better.
The rest of the car didn't look too bad, though it was full of rust. Things did seem to fit OK and the electrics worked well.
I probably should qualify this by saying that in general the car had not been maintained and it wouldn't surprise me if the engine oil was still original - just topped up from time to time. The colour and smell were not great and the thickness of gunk on the centrifugal slinger was impressive (photo attached - after degreasing!). The brake fluid was more rusty water than hydraulic fluid (photo) and the head was cracked near one of the exhaust valves, likely due to overheating. One of the combustion surfaces on the head was branded with the outline of a screw that probably fell into the cylinder during a plug change.
All this is just my experience and I don't want to bag Polish engineering. They are smart, proud people but you can't help but feel that the Nikis were very much built down to a price (and then some ...). Out of interest, I've owned a few German cars over the years that were real dogs as well.
Nowadays the little Fiats & Nikis are generally spoilt and fettled as befitting their place in automotive history. But back in the day, they were cheap and disposable.
Chris