should i trade the engine ??

i have an 83 3.0 911 targa with 178,000 miles on it. one mechanic says this original engine needs too much work it leaks in a few places the worst is between the engine and transmission. he also says once he takes out the engine i'll proably need to replace the clutch. he thinks i should replace the engine with a lower mileage 3.2. another mechanic says all this is true but that i should keep it all stock and fix this one. he also says that to fix what i have is probably more money then replacing it. i'd appreciate any suggestions. i want to keep the car. happy new year

The engine leaks so your mechanic wants to replace it? Checking the web I found 4 3.0 engines for sale - prices from $3000 - $4000.
That kind of $$ will fix a lot of oil leaks!

I'd get a second opinion from another mechanic.

Oil leaks are not really a method of diagnosing the internal health of the engine. I would (1) find a new mechanic, and (2) have a leakdown and or compression check done on the engine. If there are no other signs of problems, and the leakdown/compression check out fine, I'd consider just replacing whatever seals or lines are leaking.

One thing, though, is maybe if the engine is leaking around the bases of the cyls or heads, or if there are any other indications of pulled or broken head studs. You did not mention anything about this, but if head studs are broken, a total rebuild on an engine with your mileage is probably sensible.

If the engine needs to be rebuilt, I personally would stick with rebuilding what you have. If you plug another, used engine in, its hard to know what you are getting, how many miles are on it, how it has been treated, etc. You could be getting an engine worse than yours, with new seals. If you have it rebuilt, you know you are getting a fresh engine.

A 3.2 will fit, but there are some modifications that need to be made, which will cost money.

Brian