'94 960 pushing 200K miles.

Gradual loss of coolant that the shop diagnosed as a failing head gasket. The pressure test shows slight seepage out the rear corner of the gasket. His rough estimate of the cost of replacement was between $1000 and $1200.

I read enough in the faq to know that I don't want to attempt this myself. So I'm wondering what my options are from a practical standpoint.

I can live with it and add coolant until it gets too bad; don't know how long that would be. I can dump the car at a fire sale and replace it with a later model 960 (I'd like another RWD wagon, but the V90s are hard to find). Or I could purchase a replacement engine and hope for the best. I see that replacement engines can be had on www.car-parts.com in the $900 - $1000 range.

Thoughts, suggestions, experiences, and advice welcome.

P.S. If I replace the engine, how important is it to get the same year model? I know there have been engine mods related to the timing belt. Can I put in a later model engine, and what mods would be required if I did?