sorry to here the news as I've been in the same position as you
here's a link to the thread I started about looking into a to swap or rebuild, it maybe of some help
clickall you need to have done is a compression test and that should tell you the answer
you should have 11.5 in all cylinders if not there's a problem,
if you down on compression you down on power and thats a fact
you may not have noticed the power draining away but put it on a rolling road and you will find out how much you've lost
there's a few things you can do
swap the engine
have the cylinders bored and fit over size piston rings
have the bottom end rebuilt ( new bearings ect ect )
have a full rebuild
no matter if you swap or rebuild you may will to replace the cam belt. so you want to think about all of the other things cam belt related, pump, tensioners ect ect
keep us posted on how the 2nd opinion goes