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Thank you everyone, for your responses and input. It's been a hectic day, where I was ready to sell the car to a friend for $6500 to saying no way I'm keeping it, back to the middle of the decision making process.
Like I'd said earlier, just putting up the pictures from when I've owned the car made me toughen up a little, and realize how much I do enjoy this car, and ask myself, how much I'd be willing to invest to keep enjoying it the way I have so far, and I keep coming back to the consensus- pretty damn much. To give up on it now would be weak, and I'll only enjoy it all that much more after putting more of myself into it.
In terms of the rebuild, I am looking at a full overhaul, the gaskets/studs approach was only to make it until next summer or fall, for the proper work then. Even this seems a little excessively risky, as I know an intact motor is a much better starting place than a not intact motor, and I'd like to torture the parts in there as little as possible.
So the unfortunate but tentative plan is to store the car this winter through summer or fall, and start looking at Porsche shops down in the Milwaukee/Madison area, and start planning the rebuild!
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