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Hold on a second. The only thing that needs to be "tightend" (besides bolts that hold the motor mount and cover) is the belt tentioner on the water pump. But they are knowen to go bad anyways.
Worst case, you need a new water pump (that's where the belt tentioner is). I can not see how you could possibly need a new motor.
Post picture. I dont belive this mechanic.
 

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Well I guess the crack shaft could of gotten damaged if the pulley/balancer was'nt tight. Still, I dunno. Would like to see pic's of damage.

As far as the $1100, I say get your hands dirty. I bet if you search craigs list you'll find a running 1.9er (or even a 2.0) for $100-200. Rent a engine puller and get a set of Stanley metric wrenches and sockets. If you can turn a wrench you can get it done on a saturday. Throw in a new water pump and T-belt, intake gasket would be a good idea to.

Thats IF you need a new motor.
 
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