You should figure out what happened to the old engine first. It may be something that can be repaired much easier than removing and replacing it with a new engine.
Ok so I have an 89 22-re 4x4 and the motor just took a crap on tuesday. I was driving down the road and I noticed a power loss and it started knocking real loud and I could feel it in my feet. Now I want to go ahead and just put a new crate motor in her, but I would like to get some opinions from some of you guys out there. Any suggestions?? I have seen claims of motors that put out 170 HP. Is this true? Is spending the extra money worth it? What kind of MPG can I expect from a new motor? Thanks