Cheers guys,
I have spoken to the local BSA club, and although the guy was pretty friendly, and actually had a B40 engine (in pieces, not an army model, not all the parts from the one engine, and definately needing a rebuild) I thought the $1500 asking price was a bit steep.
Dirtrumpy put me in touch with the secretary of the NSW club who was a wealth of knowledge. He gave me a couple of leads and websites/forums to look at. He seemed to think, as a couple of others have mentioned that $300-ish was more appropriate as an asking price for an engine that needed rebuilding?
There was a fully restored B40 WD in northern NSW that sold on ebay last year (when I didn't have the coin) that came with a spare (apparently rebuilt) engine, frame, tank, pipe, etc. The whole lot went for $2500. I'm kicking myself now, but there you go.
I suppose the main points are, I'm after something reliable and (relatively) inexpensive. I know that dollars have to be spent on these motors, but I don't want to start with the worst engine BSA ever made and try to make it better. I'd rather start with something reasonable and do the essentials to do to get it onto the track.
Cheers