How much for an engine rebuild
 

How much would a third gen engine rebuild cost?

You should be looking at about $2-3k for the basics and a little more if you want it ported. Depending on where you go, it could be as much as 4k at someplace that's really popular where they feel they can overcharge because they think they're the best.

The place buy my house charges 5,500k :( anyone know where In Northern cali I can get a rebuild cheaper

would it just be cheaper to put a LT1 in it?

If you're Jim LaBreck, hellllllll nooooo, lol. But, Jim is a little crazy. Even if you're not crazy like Jim, the answer is still no, but its not too much more.