You guys have given me a lot to think about.
The auction said "starts" and the engine did not appear to have damage done to it. The oil looked good, no radiator damage, etc. Had a hard hit to the oil pan but it appeared in good shape structurally. OBVIOUSLY I am no mechanic and have relied in the past on my local mechanics that have done okay to this point. I've bought a couple minimally wrecked vehicles and I know a great frame shop, so I figured for sure frame damage and steering but never thought that there would be a problem with the engine (Being a Toyota and all). This will be my 5th 4 Runner, and I think the excitement got the better of me when I saw this one. Obviously I am over my head with this one. mgprodfit is right - I shouldn't have bought it.
FYI - yes we got spark and yes we got fuel. It turns over like it wants to catch but just can't.
At this point the engine is taken apart to the valves since we (me and the mechanic thought it must be a valve job) and I have to say I think my mechanic is not the best for this but I'm kinda screwed at this point to take it to the dealer (in pieces)
My only hope now is to put in a known running engine and get on with the repairs to the frame/steering
So, unless I am reading wrong on my initial questions, the key should work when I use the existing ECU with the new engine.
I guess if I do this and it still doesn't work, it is an expensive stupid tax.