The vultures, err, crazy chicken, is already moving in for parts.
$2700 is high unless that includes the labor
and the engine. To give you an idea, car-part.com is showing plenty of Zetecs from $1500 to $400.
From the sound of it, I would assume you need a new block. The head might still be saveable. It would need to be milled, thats about $100. Gasket set would set you back a few hundred at the most. In my experience, a new shortblock, from say Checker or AutoZone would cost you around $800-$1500. If you
only needed the block it would be less.
Going this way also allows you to bump up compression (or lower it for a turbo). You can change cams, get a valve job done on the head for better breathing, etc.
My friend picked up the 2.0L SOHC engine for his neon for $400 with only 40K on the car. He drove the donor car around the lot before he pulled it out too. If you would like, I could put out some feelers around here and look for a new (to you) engine.
