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You have low milage for a rebuild, but if your car is burning oil like mine ( a quart every 300 miles or so) go for it. I changed my oil at 3000 miles since new ,and there was almost no wear (parts were still within new limits). The valves and seats did need reconditioning though. I bought all Toyota parts, Shopped on line. Its late, I will post more later.
Sam
 

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Buying a used engine is easier, but the condition will be unknown. I have bought plenty of junk yard engines and transmissions, and they are hit or miss. You can always return them if they are junk though.

Rebuilding the engine is expensive, your going to need tools over and above what was needed just to pull the engine and you will need manuals( I have three for the corolla, and they all have details the others lack). The manuals will tell you what tools you need, and what procedures to follow to check and rebuild the engine.

It takes more time and care to rebuild (mesuring parts, machine work, cleaning parts, looking for and waiting for parts and assembly), but if you do it right. you will know what you have and it will last.

It really depends on what you want. I am going to keep my car for another 10 years 100000 miles.

You did not really say how bad the oil burning problem was ,and "loss of power and feels like its about to seize up" is subjective. Is it burning so much oil that you have run out of oil before? Do you still have good compression? The corolla repair manuals will guide you through the process of determining what is wrong with your engine and then how best to procede.
 
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