How does the engine run now?
Who did the compression checks, got numbers?
Smoke/vapor out the exhaust pipe, rough running/idling, no power??
Oil looks milky, oil in coolant (head gasket leaking)??
IME it's hard to find anyone who has experience rebuilding these engines correctly (except FJ80 Oregon and a few others scattered around
the country).
One way to do it is have your original block cleaned and machined as needed, ditto for the head.
(tip: there's an oil pump bushing that can get damaged by hot tanking the block)
Generally speaking with few exceptions, use OEM parts only.
If money is tight look for a used engine (check Classifieds here) that runs well and doesn't knock/smoke, run it as is, or have a (good) machine shop
check/machine the head as needed (and replace the valve stem seals) before you stuff it all back into the vehicle.
There's about 9573 posts on the subject so start reading.
ps: I made that number up

(but it's huge).