I would find shelling out $6-8k for a replacement too hard to swallow. It's not that the engine isn't worth that much it's just that if I were going to spend that much I'd go for something different. A purpose built v8, turbo diesel, or something with current manufacturer or aftermarket support. If I had a blown engine right now I'd take a chance on this:

http://denver.craigslist.org/cto/4366780350.html
I'd want to get enough info about the rebuild or talk to the shop that did it first though. I'm pretty sure this is a DI and drive by wire setup since it's an '02. However, for about $2k you'd get everything you need to do the swap and when you're done get some money back by parting out or sending to the crusher.
There's no 'I' in denial.