OK...so I finally got the heads off my car (thanks for the breaker bar advice BTW) and took it to the shop where they pointed out that on top of looking scorched, there were little pieces missing...and asked me if the pistons looked like they had little bits of melted metal in them. Come to think of it, yes they do.
So one head is completely hosed, the other could potentially be redone...but the engine itself is probably toast. [After a week of taking the car apart, I'm glad roomie suggested getting the heads checked before putting the whole thing back together and having it not work.]
So I'm looking for advice. As much as I've put into buying parts we knew we'd need to replace, it's getting a bit...illogical...impractical...more money than it'll be worth. We should probably give up but I'm too stubborn for that and I'm having fun, so...what's the next step? I'm not looking to trick the car out and spend a jillion dollars on it. I just want to get it back to the point where all we had left to do was the convertible top and the paint job.
There's a place near here that has a 117,000m engine that they'll sell me for $500, but I've no idea how much it should cost. It looks like a good deal (it's actually listed on car-part.com.)
We've tossed around the idea of putting the bigger engine in it, but I don't know what all else I'd have to replace.