Good advice there from Kebowers. You're at the stage where you really need to evaluate the cost/benefit. Assuming you confirm that the engine needs a rebuild, you'll want to pull it so that you can replace ALL the gaskets and take care of all the other dirty, worn, and/or worn parts. Even doing everything yourself, I'm going to guess you'll spend a minimum $1500. How long do you plan to keep the car? Contrary to the 'Mr. Practical' approach, I like doing that stuff and the personal satisfaction of such a project often trumps some of the other considerations (price, effort, etc.). My usual program is to get my ride just about where I like it, then sell!

Have fun!