Ok..the news is not good anyway I look at it. The mechanic calls and says I need an engine overhaul,(new piston rings,cylinders, etc). He says parts and labor cost $1,200. A newer engine (by 2 years) is $1,000 plus $300 labor. I'm torn as to what to do. He suggests the new engine. But here is my concern:

If I get this engine, (which is about 12 yrs. old) how do I know how sound it is, or if it will become a money pit? I don't right?

Or.... am I better off having him repair my engine (albeit 14 yrs. old)and I know everything has been fixed and is at least in good shape.

1). What would you do?
2). Think those prices are good ones?
3). Can a blown head gasket really cause me to need this overhaul or is it something else?

Thanks