That quote is way too high usually an honest reasonably priced mechanic who has experience in these engines would charge $500-600,always get a second,third,fourth and more opinions.
I would call your local community colleges/vocational schools and they will replace it for free if not find a friend,relative,neighbour or co-worker who like to repair cars on the side as a hobby or a favour or even trade services or buy them several cases of beer.
If that fails find a local off-road club and you will find severak people that own 4-Runners,pickups and landcruisers where those people have all of the experience and will replace your headgasket and check the cylinder head for warpage for around $300.
22 Toyota headgasket & oil sludge recall sites:
http://www.babcox.com/editorial/ic/ic110028.htm
http://www.the-summit-group.com/rec/4x4/toyota.html (3.0L,V6,headgasket recall)
http://home.att.net/~ccatanese/ford/toyota_warranx.htm (3.0L,V6,headgasket recall)
http://home.off-road.com/~kemanuel/V6-HG.htm
http://www.geocities.com/brian894x4/...ketrecall.html (3.0L,V6,headgasket recall)
http://www.showmesome.info/hilux/info/recall.htm
http://www.off-road.com/toyota/4runner/topqs.html
http://www.alldata.com/recall/make/Toyota_Truck.html
http://www.alldata.com/TSB/60/94601650.html
http://www.yotarepair.com/Campaigns.html (3.4L,V6,headgasket recall)
http://home.off-road.com/~bibelheime...eadgasket.html (3.4L,V6,headgasket recall)
http://www.jasperengines.com/pdf/5SFECoolantLeaksTB.pdf
http://www.lemonaidcars.com/secret_warranties.htm
http://www.nordicgroup.us/oil.htm#Toyota%20Sludge
http://www.toyota.com/about/news/pro...-consumer.html
http://www.usatoday.com/money/autos/...ota-sludge.htm
http://www.petitiononline.com/TMC2003/petition.html
http://www.nhtsa.dot.gov/TSBScans/sb621323.pdf
http://www.nhtsa.dot.gov/TSBScans/sb628694.pdf
http://groups.msn.com/ToyotaOwnersUn...gaskettsb.msnw
http://groups.msn.com/ToyotaOwnersUn...adgaskets.msnw
http://www.babcox.com/editorial/ic/ic100052.htm
Sidney
Repair tv's,vcr's,home/car audio out of my home
E-mail:sidneybek(at)yahoo.com
Dartmouth,Nova Scotia
Canada
1985 Toyota 4-Runner,22R-E,W56,RN60LV-MSEK,rusted rear step/towing chrome bumper with 243 000 KM