Since you ignored sane financial judgement, then you better be absolutely in love with and committed to this vehicle, and ignore what everyone else thinks about it. This a project only a fanatic does.

You paid too much, IMHO, for a car with no real market value, IMHO. Any warranty on the replacement engine?

I hope you like a project. 

I have to agree with these guys. Why would anyone buy a car with a blown engine? I just got rid of one of those, where were you then?

Are you going to put the new engine in yourself?  If you pay someone to do it at about $2000, you now have $5300 dollars in a $2000 vehicle. On what planet does that make sense?

The car is realistically worthless and mechanically totolled but if your emotionally attached and you are fine with it then I guess no one is stopping you.