What do I do know?

[Ricks911s]

(I just posted this in the technical forum but after thinking more on it, it's probably better suited here.)

For the last year (on and off) I've been restoring a 1976 911S. Today was not good. I've been leaking a lot of oil (onto the exhaust which has caused me a great deal of embarrassment ) and as going to replace the oil return tubes. I took off the heat exchangers . . blah blah blah and looked up and saw that oil is coming out of cylinder 2 and 4 (middle on driver & passenger side). To top that off I look up into cylinder 2 and 4 and saw about a 2/3" gap between the exhaust valve in each respective cylinder.

Okay . . . so after I went inside I stirred a stiff drink and gulped it down . . . I recollected my composure and asked -- what do I do? Suffice it to say, I couldn't answer the question.

1) Putting in a 3.0L engine. But how much does that run? My research indicates going bigger (i.e., 3.2L) isn't an easy conversion.

2) Rebuild? I'm guessing slightly less money (and tempting, given the challenge).

Other choices?