sleeving an engine can cause problems if they aren't taken care of properly. If the machinist that modifies the block doesn't hold his tolerances correctly there can be misalignment between the pistons and the crank, in the case of the darton sleeves, the cylinders may actually move around if it isn't machined correctly, the head may have trouble sealing, the difference in heat dissipation can cause hotspots to form because the iron sleeve won't shed heat like the aluminum block would have, and if you are using a forged aluminum piston in an iron sleeve but aren't running enough clearance the piston can out-expand the cylinder and seize it's self tight in the block (you have to pretend the whole block is iron and run appropriate clearances). So basically if you fork out the cash and have the block sleeved correctly by a reputable shop that has done it before and they don't make any mistakes then you're good assuming the sleeve was designed to work in the block, and dissipate heat correctly.
Think of it this way to my knowledge every single commercial semi truck has a sleeved block and they run for over 300,000 miles with over 20:1 compression ratio's often making well over a 1000 ft/lbs of torque.
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