You can find amazing cars with plenty of life in them for little cash. I bought a 1988 Honda Prelude 2.0S 5 speed with 97k miles for $450. It just needed a radiator and water pump. Replaced the timing belt while i was at it and for less than a grand she was good as new. Id drive it anywhere. Given since owning it I have put a B20 from a CRV in it and a small turbo mounted to a pretty crude made manifold but its just a toy, not a daily driver... Hell, It doesnt even have an intercooler =P
It sounds like a great car and if all it needs is another engine then find another identical to it with low miles, tinker with a few mods, drop it in, and be on your way. Its beater, gotta maintain reliability AND when you do sell it or trade it you'll never get your money's worth from dropping in a high performance EJ22T in it. IMO, for a beater, stock is the way to go.