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There are 3 things already mentioned in this thread that I would like to second before even remotely considering anything as extreme as an engine replacement:

1. ATP AT-205 Reseal, this is highly recommended to stop dried out oil seals such as the rear main seal from leaking, as mentioned already it's only $10 or so and is perfectly safe to try: http://atpautomotive.com/featured/re-seal

2. Pull your upper intake manifold and clean out the EGR passageway (and the corresponding passageways on the underside of the manifold cover.) Fairly easy procedure- there are some youtube videos showing how to do it. If it's never been done it's a good bet there is some gunked up carbon in there. I had a similar code and cleaning those passageways and replacing the PCV valve (both very cheap and easy) solved the problem.

3. Change the valve cover gaskets. It may seem like a daunting task at first to pull the valve covers but it's really not that bad especially if you already have the intake off. Several youtube videos showing this procedure as well. The Fel-Pro gaskets can be gotten fairly cheap at usual auto parts stores,

All this should not cost more than $30-$40 and may fix the issue. Of course you can also check the plugs themselves to make sure they are in good shape.and not contaminated. If none of this solves the problem then my next step would be a valve clearance adjustment which should also not cost too much as noted above. An entire engine replacement would be an absolute last step in my book and probably not worth it anyway as the money could be better used on a down payment on a newer vehicle. Good luck
 

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Unless you pretty gosh darn sure the whole thing really needs to be swapped out, start with the fast, cheap and easy solutions first.

 
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