I'm in a similar situation where it was rebuild the 2.6L or do a motor swap. I had it rebuilt once, but it blew after 30k and it was not because of abuse. This time I'm doing the swap. I have a new GM TB efi tuned for the 2.6 if interested...I'm not going to need it anymore <img src="/forums/images/graemlins/lol.gif" alt="" />
As for things to look for and possibly upgrade, look at the head. Most go with a Clearwater head that eliminates the jet valves as that is a weak point if ever the engine gets a little hot. Outside of that, don't use cheap parts and do not reuse the head bolts\studs. Probably best to spend a little more and use OEM stuff.


'88 Raider. 2.6L dead...2.4L swap in progress, AT, 33's, 2 bouncy seat,AC, CC, 2.25 exh, 2" Tbar, 2" BL, rear DB, rear LSD,4.90's, SW hubs,gen2 uca's, KYB shocks, snorkel, elec fan, MSD.

'99 chev k3500 crewcab
'15 Subaru XV
'94 YJ
'86 Fiero GT