oil pressure switch/oil leak/new engine Options

[era vulgaris]

After replacing my oil cooler seals with the engine in the car (quite a PIA, btw!), I discovered that the source of my oil leak was that the PO had JB welded the oil pressure switch in place because of stripped threads (IMG:style_emoticons/default/mad.gif)

I cleaned it, re-JB welded it, and the leak has stopped (there's actually enough thread there to maintain an electrical contact, just not enough to hold the switch in). Now I know this isn't a permanent fix, so I'm weighing my options here.

I don't have experience drilling and tapping threads, so if I went that route I'd have to pay a shop to do it, and it would likely require splitting the case to do so, right? Which at that point I may as well have the engine rebuilt, and the dollars start piling up.

The other option…I found an engine a couple hours drive from me for $850. I contacted the seller and this is what he told me: It's a stock 1.8 case, stock cam, but the pistons and cylinders are 96mm instead of
the 94mm stock. The engine was totally rebuilt. The rod bearings are
0.10, standard mains, standard on the cam shaft. The heads were rebuild
with ground valves, new seats, guides, and springs. Engine has a few hundred miles on it, and was rebuilt a year ago.

Apparently the guy was using it for his car while his 2.0 was being built up to a 2.3 so it was an "in the meantime" engine for him.

I've got a 1.7 with Djet. Is there any reason why my Djet wouldn't work with the larger displacement engine? (Still new to Djet, sorry if that's a dumb question!)

Do you guys think that price is pretty good? It sounds like it'd be easier to pop a new engine in rather than disassembling the engine to have it tapped for new threads.