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I'm with Andy on this. Buy a used motor, slam it in and be done with it. While you are doing it put a new headgasket in the used motor as PM. cruiserman had a 1FZE, A442, and TC for sale for $1000 for over a year now. I think he finally sold it. But people are giving away 1FZEs all the time. It is a good motor but it isn't an easy swap for anything. Usually by the time the engine needs replaced at 300k or more (note USUALLY) the rest of the Cruiser is shot so it isn't worth putting the time and effort into swapping in a lower mileage motor. At least that is my opinion.
If you elect to try and repair it I would not screw with replacing the freeze plug. I think you are asking for a bigger headache. Driving the new one in could result in a bigger crack.
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