My personal opinion would be finding someone who has a decent GTE for sale, buy it and swap the engines out. That, or resign yourself to the cost and time and see about rebuilding the engine you have. (I myself went with a reman'd engine with a good warranty). But I gotta tell you, from your description you're going to be putting a lot of money into it if it's salvagable at all.
You definately do need a TSRM (Toyota service & repair manual) if you don't already have one, as they are invaluable when it comes to repairs and maintenance. But for a complete rebuild, that's something you should probably leave to someone who really knows what they're doing with these Toyota engines. They were designed with very tight tolerances, and that makes doing a quality rebuild more critical and more difficult than it would be for say a comparable year Chevy. If it's not done right, you'll be right back in the same boat in short order.
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