Need help with rebuilding engine!

I have a very nice, very clean 1986 16v with about 130K on it... I was driving it the other day and the engine conked out and would not restart. I had it towed to my mechanic, who is looking at it now but is afraid she's dead since he can't even get the engine to turn manually with a wrench...

I'm hoping that it is something that can be replaced, but in the event that I need to rebuild the engine, does anyone know someone I can get in touch with to do this? It's the Euro version that I need help with...

I live in the Bay Area, but will be in the Orlando, FL area sometime in November....

Any advice or direction is greatly appreciated!

Thanks,

Chris