I just rebuilt my N/A engine. It cost close to $700.00 to bore it, crank turned, new stock oversized pistons, deck resurfaced/with timing cover, and complete gasket set. Man the gasket set was the most expensive part, $160.00!!! New oil pump drive bearings, freeze plugs, main and rod bearings.
I built the engine myself, so I saved a bundle on labor. Sounds like you are being quoted a price for the R and R the engine and rebuild. I would not take a chance on just sticking a used engine in the car, but if you trust someone to take a look at the bearings and can somehow verify a compression check you could feel a lot more certain as to the shape of a used engine.
I vote rebuild and then get another 200,000 miles out of it!!!
Russ
You can also get the head checked out too. It probably needs new valve guide seals at least, but a valve job wouldn't hurt.
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