How is the engine running? Glitter/sheen in the oil can be a sign of impending problems or just that they let the oil change run long. Are the temp and oil pressure solid while driving it around?
If you do need to replace the engine are you looking for just a stocker or do you want to build something up. If the engine is running ok for now it could be a chance to put something together to add a little umph to that right pedal
