I am exactly where you are right now. My block was pitted so engine came out and was completely stripped down. THe rebuilt short block from toyota was like 3200, full machine work on the head, and block (over bore, pistons, machining the crank bearing ect ect) is going to run me about 2000-2500.
Had the option to pick up a $450 running 1FZ but at this point i decided to keep going with my engine. I want to remove all of the question marks under the hood.
You can see my photos in my build thread linked in my sig