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it's not common that anyone here really hears about 320i/d problems and cracking a cylinder lining is a big deal on its own. What you'll end up having to do is tear the engine down to the block, bore it over (maybe 1MM would mill out the damages) and replace the piston (that may also be damaged from a cracked lining). As you're tearing it apart you'll likely come across any other damaged parts - if you're thinking it could be an underlining problem; that is of course the customer KNOWS that's the problem 100%... just tell your customer to expect additional charges for parts and labor in case there is an underlying problem
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