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A 2005-2008 Corolla engine will work in your car. I have assisted in this type of swap before. You will need to swap over your intake and exhaust manifolds, a few sensors(just check and see if the connections are the same) and your throttle body. I would use a 2005-2008 engine anyway as they have the updated pistons and rings to address the oil consumption issues that plagued the 98-02 1zzfe engines.
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2005 Corolla LE - Impulse Red - Auto Trans - 1ZZFE - 86,000mi
2003 Echo - Auto Trans - 96,000mi. - slow as dog-dirt - I'd rather put my money in the bank than in the tank!!!!!
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