I agree with BEAUPS' post, stuff sometimes just happens.
Now to get it fixed, I would try to find out if a crate motor is available for your car. A crate motor will be much more completed than any rebuilt so the actual labor to swap it will be cheaper. Also it will be a brand new motor, not some once broken rebuilt (which with our motors complexities calls into question the rebuilders reputation). And by complete I mean very complete, most crate motors will not require new belts, accessories, gaskets, plugs, seals or any of those oh-by-the-way parts that need to get replaced when you do a rebuilt motor.
You will also have the added advantage of being able to sell all the still good parts from you old motor since the crate doesn't have a 'rebuildable core' charge associated with it.
I did a crate motor in my mustang gt just a couple of years back. For starters it was cheaper than all but the cheapest rebuilt motors available. Second there wasn't a $1000usd core charge, which turned out to be fortunate since my one head and block were damaged.
I selling most of the still good parts off the old motor recouped most of the cost of the new motor (I sold the water pump, intake, injectors, COP coils, fuel rails and more on ebay). If the block had been in better shape I would have either kept it and rebuilt it myself for another project or sold it on ebay too.
In the end I only spent about 1900 dollars of the insurance money on getting a better, new, motor in the car (the original estimate was 6500). Yeah I put out 3900 (2900 on the motor, 200 freight and rest was labor) up front then had to recoup almost 2000 selling on ebay, but it paid off in the end.
