Three years ago my '96 FZJ80 (RedCruiser) lost her engine at about 200k. Had over heated a few times just after I got it (with 34k miles) in '99 but she held on. Replaced the radiator with a 3-row and never had a problem since. But the damage was done. Many subsequent hard off-road miles didn't help either.
When the engine blew and I couldn't bear the thought of replacing RedCruiser, I got a short block from Cruiser Dan in Albuquerque (awesome guys over there at American Toyota) and had it shipped to Dave Kinnison at Ultimate Imports in Tempe. (Highly recommended.)
We replaced most any part that looked like it needed it so the cost was not bare bones. We also had his head guy do an extra $1200 worth of porting and polishing to coax a few extra ponies out of the engine. With a lift and 33's it drives about like stock or even a bit more brisk and still on regular gas.
The entire cost of engine, other parts, and labor was right about $8k. Totally worth it. She can climb a tree if traction is good. RedCruiser is my baby and she knows it. Sorry dear...
FWIW,
Michael