Lexy,
Thought you might be interested in another data point. I rebuilt my engine in 2002, and apparently spent a bit more than Cees did. Here are the major costs:
Machine shop, including boring cylinders, valve job with new springs, new timing chain, new bearings, new oil pump, and assembly not including mounting the head or the oil pan: $1727
New Mahle pistons (6): $1086
Misc (new water pump, clutch, pressure plate, pilot and throwout bearings): $350
for a total of $3163. I did the engine removal and re-installation myself, including installing the head, fuel injector pump, and other assembly.
Of course I also had the radiator cleaned out, put in new coolant hoses and clamps, new plug wires, points, condenser, new flexible fuel lines, new motor mounts, fan belts, etc., but the total above does not include these items. Luckily, my fuel injection pump had recently been rebuilt, so I did not have to incur that (considerable) cost.
If the car still has its original engine, I would advise rebuilding it or having it rebuilt rather than installing a different engine, to preserve the value of the car.
Chris Earnest