Subaru Repair: 1996 subaru outback 2.5L Bad head gaskets?, subaru legacy outback, coolant loss

Question
I have a 1996 Subaru legacy outback automatic with the 2.5L engine. I drove it about a year nursing what I believed to be a failing head gasket (occasional over heating and coolant loss). Now I can't go more than 5 miles before it overheats. My questions are these:

1) I got a quote for headgasket replacement at $1200 to $1400. I can get a JDM 2.5L for $1000 to $1200. What is the typical cost of pulling and replacing a JDM engine?

2) Are there other engines that are compatible (one of the newer turbocharged engines like in the Wrx or outback) for this car and will the cost of install be the same? If one is would I have to upgrade the other components(transmission,etc...) to handle the added HP?

Thanks in advance.

Answer
Better off just fixing what you have.There is a lot involved in swapping over all of the stuff from jdm to compliant obdII and in a very short time the epa is going to really start to crack down on anyone who tampers with an obdII vehicle.Not to mention the jdm has the same style head gaskets while during the headgasket repair yours would get the updated ones.

Justin
All Wheel Drive Auto