Thanks for all the responses guys. Been down in the dumps since all this happened. I was prepared to eventually replace the engine or have it rebuilt.....just not 3 weeks after I bought it lol!!
Been there - done that - got the tee-shirt... One of my first cars was a '78 nova - threw a rod in the first couple of weeks. I was too poor to pay for a swap - so I bought a reman'd longblock and figured it out (mostly). It ran - but ALWAYS had vacuum leak issues (hey - I was 16 - what can I say...)
Anyway - I'm not sure how mechanically inclined you are - but IMHO removing and replacing the engine as a whole is probably an easier job than pulling heads with the engine in the engine bay and an overhead cam engine...
SO - if it were me - and I was fairly mechanically inclined - engine as a unit and do it myself. If I could find a reasonably low mileage JY motor I'd go that way - otherwise a quality reman.
If it was me - and I was NOT mechanically inclined - I'd look for a good junkyard engine - and find a good back-yard / shade-tree mechanic to do the swap. Shops that bill "by the book" can really eat through your wallet in a hurry.
Example - A good friend came to me a few months back with a similar situation. Rod bearings were gone in his 175K mile 2007 Dodge (blech) Nitro. His "normal" shop had quoted him $5500 to put a JY motor in it - or $6200 to install a reman'd unit. The difference in price was mostly the cost of the motor - although the swapping of all the accessories added an hour or two to of labor to the reman install price (if memory serves the JY quote was about $3500 in labor and $2000 for the used motor - the "reman" was about $2300 for the long block - and $3900 in labor and other stuff). This seemed excessive to me... ;-) I pointed him to a trusted old "shade-tree" mechanic friend of mine who went out and found a good JY motor, haggled the JY down to about $1300 for the engine, and charged him s flat $500 labor to R&R it... After miscellaneous stuff like fluids, replacing some hoses, etc he was under $2100 out the door. He "tipped" the mechanic $100 and they were both very happy with the outcome.
Anyway - I've had mine now for a few months... it has 260K+ miles on it and I've been spending on it (timing belt, water pump, idler pullies, thermostat, plugs, Tundra brake upgrade, lower ball joints, inner tie-rod ends, etc...) and yesterday I managed to puncture one of the cheapie tires badly enough that I doubt it will be repairable - so I'm guessing that the mudders that I was planning to buy a year from now are going to hit the wallet this weekend... :-( ... That said - I bought a 260K vehicle knowing that I was going to keep it "forever" and that if I used quality parts when it needed repair - they, and it, would probably outlive me...
Best of luck to you... hope it works out well for you.