Rebuilding a C223 is expensive. The importer who sold me the 2.8 diesel I installed can get a C223 with transmission for $1500. There's a good chance you can get just the engine by itself for less. Shipping was $200 for my engine/trans combo, I assume the same for this one. Quite a bit less than a rebuild. If you can't find a running engine, I can put you in touch with this outfit.

Have you tried nationwide junkyard searches? There may be some engines around somewhere...

Also, if you were looking at the $2800 2.8 on eBay, don't bother - I got mine with transmission for $2000. Way too expensive - that's why it's been listed for months.

I don't think the 2.8 (4JB1-T) will fit the earlier chassis (1984-1986, or is it 1987?) without modification. It will bolt into the 1988-91 Trooper, but then you'd have to convert the rest of the vehicle to diesel. See the link in my signature (and the thread in this forum) for more information on this conversion. I think the seller is either misleading you or doesn't know what he is talking about. The engine may well bolt to the transmission, but I would bet there would be crossmember issues and possibly motor mount issues as well.

If I were you, I would explore importing a low-mileage C223 from Japan and installing it. Keep the old engine for spare parts. If you have to get it with the transmission, there has been a reasonable demand for these units as they are rare, so you could always sell it.