I will say go for low KM Japan imported engine. And do all this work on the new engine and put it back together. This engine seems to be farked up. And the best bet will be to go for 1jz route if you plan to keep the car to your self. If do not intend to keep the car for long than a decent head-gaskit and ARP bolts/studs will give you 2-to 30K Km on this engine.
Having said that I replaced two 7MGE engines on my cressida. and one of them was under warranty. The one now in my car is a low km jdm Engine and seems to work like a charm. I havn't even bothered to torque its head to screw it up.
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