A&F, I'm really sorry to see this, and it's a hugely unfortunate way to start a relationship with a car.
Especially after all the forum rhetoric about 3.2 being "bulletproof".
$10,000 makes this problem go away. Rebuilt engine. Or best offer.
Porsche 911 Engine Rebuilt Motor with Warranty 3 2 Carrera | eBay
Here's one for $8500
Porsche 911 3 2 Engine 1987 Weekend Rides | eBay