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Billy -- It's hard to get hosed for $1000, but a 960 can eat up your time &/or $$$ mighty fast. I've got both a '97 stock 960 and a '96 Converse, which Ross built for me with a 2000 Explorer 302 and a Tremac 5 speed. I've got a pretty good handle on costs for either direction you go.
An option you didn't mention is to avoid the risks with the engine you've got which sounds like both an unknown and a Sikorsky -- i.e., why not go with a remanufactured engine. You can find an I-6 out there with a warranty for under $3000. And then it's a drop in situation which you can do or have done for about $1000.
If you go with Ross, you obviously have the choice of having him do it or buying his parts,etc. Now you've go a '96, so that means serious OBD II and emissions concerns and if you're going to do it yourself, you better know what you're doing. I guarantee you, even if you do it yourself, it's going to cost you more that a remanufactured I-6. If you have Ross do it, and I am a very satisfied customer and big fan of his ... you've got to have a serious talk with him and a sense of how long it's going to take.
In summary -- follow the advice of the good fellas in the thread and you're gonna spend $1500 and maybe solve it; remanufactured engine & install maybe $3500-$4500; do it yourself Converse $6500-8500; and have Ross do it - minimum of $11,000.
'97 960 with 110K;'96 Converse 965 2000 Ford 302 & Tremac T-5;'93 940 w/175K
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