im sure if it did turn out to be something like a head gasket blown or something like that, a new motor wouldnt be a total waste, IF he planned on doing it already. i'm kinda that way too, i need something to break before i upgrade it. for example, my water pump is taking a dump right now, so when i get the water pump replaced, as well as all the timing components, PLUS the cam seals, and while the cam seals are being replaced im getting 272/272 cams. a mod i was probably going to wait until mid-2008 to do, is going to be done in august.
another example, im in mid-process of getting the gm-maft setup, but to install it im going to need straighter i/c piping. so im going to run short-route piping into a brand new intercooler i want to get, all because im getting a gm-maf.
with the new cams and gm-maft, ive already bought a new eprom ecu and im saving to get dsmlink so i can tune everything nicely.
i'd get a 6-bolt motor too, i just dont have the money and/or the reason to get one yet.
oh and ask cory where you can go to have your timing belt fixed. the shop does good work but you would have to get rid of power steering and a/c, and also turn your idle all the way up for the car to run, BUT you would have timing belt replaced