pyroguysf

I have a 1996 GT (automatic) with ~150k miles in very good condition other than the mentioned rod knock, which is starting to get pretty bad. It had a head job a few years ago (I forget exactly how much was done), and other than that, it's just had regular maintenance since I bought it in 2004 with ~106k miles, and as far as I could tell, it was relatively well maintained before that.

While I don't have any experience rebuilding an engine, I'm pretty mechanically inclined with a strong attention to detail, so it's a project I'd be pretty confident in taking on. The biggest problem is that my toolbox isn't very well stocked, so initially, I looked at taking the easy way out by replacing the engine. I was quoted $5500 installed for a Jasper remanufactured stock replacement with a 3 year/100k mile warranty, but it seems a little hard to justify.

From looking around forums and such, I'm gathering that a $5500 budget rebuild could get me quite a bit better than stock, and frankly I'd enjoy the satisfaction of doing it myself. I haven't done a ton of research yet though as far as parts go, but I know there's all sorts different parts that can be swapped in (I see 99+ PI parts are popular, for example). I also know there's used engines and such out there, but I'd prefer to have a fresh one.

So, what do you guys think- rebuild or replace? Your comments are appreciated, and any rebuild advice is particularly welcome. Thanks.