When water starts falling out of the engine, the temp gauge is no longer accurate. It takes water running across the sensor to make the gauge move.

The piston tops are way too clean for normal operation, this motor got very hot burning off carbon. When overheated, piston ring tension will fall then oil consumption will rise. And piston skirts will collapse increasing piston to wall clearance.

Try car-part.com for used engines, it is a nation wide inventory salvage yard search.