The rest of your story doesn't particularly bother me, but as somebody else
pointed out, such a checkered history makes a major haggling point.

This part bothers me. Somebody inspected the engine per prop strike
instructions, yet you have no idea who it was or such as that? The rules say
that any inspection made must not only have the signature, BUT THE POWERPLANT
CERTIFICATE NUMBER of the person performing the inspection (or the agency
number, if it was done that way). No certificate, no inspection, and I'd point
that out to the seller in no uncertain terms. If they shine it on, then I'd
take up the matter with the local FSDO.

If you've got the certificate number, then a lot of the aviation search engines
(landings, etc.) will let you look up the name and address of the inspector.

Jim



(Mike Granby)
shared these priceless pearls of wisdom:

The engine found its way back to the USA were
-it was torn-down and inspected by someone whose name I can't read as
-per the Lycoming prop strike instructions, shortly after which it was
-fitted to the PA-32.
Jim Weir (A&P/IA, CFI, & other good alphabet soup)
VP Eng RST Pres. Cyberchapter EAA Tech. Counselor
http://www.rst-engr.com