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Where's that "What you talkin' bout Willis?" smiley when we need it???
Does your car burn a significant amount of oil? By significant I mean, more than one quart per 2-3000 miles?
Also, did your mechanic check anything else before he made his statement? Compression check for instance.
Unless your car suffered through years of lack of maintenance (read oil and filter changes), I doubt your engine is severly damaged.
Todd
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Down to none 
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