Chris - thanks for your comments.
Handbrake
I agree it seems unlikely that brakes could cause that much extra fuel consumption, but worth checking out - there are lots of historical posts about corrosion to hand brake cable. When I first jacked the car up, I thought there was a bit of an issue; however after taking the wheel off it was clear the handbrake cable was moving freely and the slight resistance seems to be due to differential and very slight brushing of brake pad on the disc (the car hasn't been out for a week and I guess in this warm weather there's some very slight corrosion to the discs). When I road test I'll check the temp of the drum and disc to make sure this isn't a problem.
Auto Gear box
One thing I had rather forgotten about was the very slight oil leak reported by the main dealer when they tried to fix the petrol issue last September. The mechanic told me it was easy to top up, so I bought a litre of fluid, but haven't yet topped it up. However looking at the maintenance guide it doesn't look easy at all, given I don't have a proper jack or axle stands.
Chris to answer your specific question - the car does get into top gear, but recently has tended to change down sooner than it used to - I've assumed this was due to lack of engine power rather than a gear box issue. However it would be good to top up the fluid - can anyone tell me whether this is possible without axle stands?
Engine Issues
I finished the work on the engine yesterday and very pleased it started first time. Most of the plenum/tubes were surprisingly clean (for 86k miles), but as mentioned in earlier post, one of the tubes was blocked - so I'm hoping this will make a difference. I also changed the spark plugs (the old ones were rather dirty - not completely sooty, but not good).
Next step is to take it for a decent road test and see what mpg I get.
BTW this is the first time I've done any serious work on engines since 1976 when I stripped down a Rover 2000 engine and put in new pistons and big ends, as well as grinding in valves etc. Unfortunately I didn't get to enjoy that car for long since around Xmas that year a young kid stole a car just up the road on the way to school. He was keen to show off his Graeme Hill impression to his mates - unfortunately, while he knew what to do with the accelerator, the same wasn't the case Re brake pedal. He came down a slope towards T junction, went straight over and smashed into both my car and my neighbour's writing off all 3. He ran away while his mates watched. Despite all the witnesses, Police were unable to find out who he was (something to do with interviewing minors).
I also had earlier experience with pistons on an A35 van - but that's another story........
Jim