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Those engines are very common. Usually, the cars die of rust before the motors wear out.
It wasn't clear to me whether your engine has a turbo or not. Non-turbo B21's should be a-dime-a-dozen. Last year I bought an '82 B21F motor with 72k miles on it for $100. (Haven't used it yet, but plan to.) Swapping in a good used motor might be cheaper than fixing the original.
If you decide to drop in a replacement engine, BE SURE to install a new rear main seal first. You might even replace the oil pump if you intend to put significant miles on the replacement.
The front seals, timing belt, and water pump can be easily replaced with the engine installed.
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Don Foster (near Cape Cod, MA)
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