Build Rig Build Ups and Diesel Swaps

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Hey all, I'm new to the Diesel world, and quickly learning that I didn't do my research before buying my 1980 BJ40 (July 1980). The rig has a B motor and I just learned it has a blown headgasket. I live in California.

So I have 2 options.

1. Fix the blown headgasket and while I'm at it, replace the water pump, thermostat, injectors and all the gaskets.
or
2. Swap the motor for a more recent diesel engine. I read here that most are direct bolt ins. Is that true? What motor would you guys recommend?

For option 1:
Would appreciate the help finding any parts places (US or Internationally) where I could find thes parts. I think fixing the existing motor would be the quickest and most inexpensive option.

For option 2:
If the engine swap if your recommendation, which would you go with, and how available are the parts here in the US.

Thanks in advance for your help.
I would ask @orangefj45
 
I recently completed a 1kzt conversion on an 09 Tacoma that was a 4 cyl 5 spd using the stock transmission and running a manual injection pump. The swap used a factory bellhousing and clutch setup, stock engine mounts. I had to modify the oilpan because of 3 failed attempts to order the right one was wasting to much time form aus, uk and spain. I used a v8 4runner radiator, duramax fuel filter, factory air box and a 22re power steering reservoir. I stripped the factory wiring harness and used the 4 cyl coolant sensor, oil pressure sensor and alt. wiring.

PXL_20251111_235705088.webp
 
I recently completed a 1kzt conversion on an 09 Tacoma that was a 4 cyl 5 spd using the stock transmission and running a manual injection pump. The swap used a factory bellhousing and clutch setup, stock engine mounts. I had to modify the oilpan because of 3 failed attempts to order the right one was wasting to much time form aus, uk and spain. I used a v8 4runner radiator, duramax fuel filter, factory air box and a 22re power steering reservoir. I stripped the factory wiring harness and used the 4 cyl coolant sensor, oil pressure sensor and alt. wiring.

View attachment 4105452
nice work, how does it compare to 2tr driving wise?
 
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