Engine compatabilty issue with EGR removal?

Hi hope you can help - have already posted this but seems to have disappeared..I'm new to this..could have gone anywhere!! We have recently bought a 53 plate Discovery td5 with a low mileage replacement 01 engine. It broke down on it's first long journey due to a water pipe coming off and blowing all its water out -steam and water everywhere. After that the engine would cut out under load. They suspected the airflow meter but appears to have been oil/water contamination in the ecu as once that was cleaned out it was ok.Once or twice have had the m & s lights on since but ok when re-started. On taking it to our local landrover guy he says that because the egr system has been removed the engine (01) is not compatable with the car (03) as you can't take them out post 02 models and will cost in the region of £1500 to put right. Car is running absolutely fine now (although he says it's underpowered) so scratching head as to what to do...help!

what a load of rubbish, not a compatible engine, the stealer strikes again..!

Sounds like bullsh1t .. whereabouts are you? Someone might be able to have a quick look and suggest something more reasonable!!

We're in New Forest near Southampton.

The early TD5's had a 3 connection fuel cooler. The leter TD5's have a 2 connection fuel cooler and in addition an egr cooler. the radiator is also different. As long as the connectors are correctly bypassed or re-routed it should be fine.

I think what the garage is trying to say is that in their opinion it effects the emissions so is therefore not allowed.

As long as it goes through the emissions on it's mot I can't see a problem with it.