Okay so here's my situation. 2 or 3 months ago i bought my 96 mx-3 gs. I had it for ONE week and went out to start it and thick blue/white smoke came pouring out

i had been noticing it was burning oil like crazy!! so i had my neibour take a look at it (he is a macanic) he said it is most likely the head gasket, AND it also sounds like a knocking on the bottom of the engine. He also said it looked like someonce recently had this engine apart. So to make a long story short the guy screwed me. I just want to get my car working again as it has been sitting in my driveway scence may. I was thinking on just tossing the engine i have now and going for the kl-03. If im going to replace the engine i might as well go bigger right? So i have been searching and reading about the swap but i am still nervous... i don't really understand VAF's and ECU's stuff like that. im such a noob. Any advice?
P.S. I still owe my parents $4000 that they lent me to buy the car. The guy wouldn't give me money back or anything... I would love to burn his house down. But i love my mx. i just want her working again....