From what I understand the trial was just before the upgrade from the 3.8 to the 4.2 mk10.
The daimler engine was compact and lighter than the xk engine.
apparently when the V8 mk10 was tested, it produced 0-100mph in 27 secs. thats 6 secs faster than the xk engine, it also achieved a top speed of over 130mph.
I believe that the jaguar board stopped the V8 mk 10 being developed, they were embarrassed that a daimler version engined of their flagship car was able to outperform a Jaguar.
Thanks to Nigel Thorley for the above facts.
Charles