$1k motor most likely includes injection pump, and being a 97, it would be higher HP pump. Plan would be to scoop that up, throw a fresh head gasket on it on the stand and run it. Could pry recoupe a few bucks by selling my current pump.
Before I convince myself that's the best path to take, is this motor worth rebuilding? Rings and gaskets like Mike said? Would that fix the blowby? Or is that more likely from piston/bore wear? I can't see spending much more than $1500 putting a motor back in this thing, and $1k or less would be ideal.