Time for a new engine for me?

My 97 tacoma has 113,000 miles on it and has horrible compression and will not start with good fuel pressure and good spark. To be more specific:
Cyl 1 = 80 psi
Cyl 2 = 80 psi
Cyl 3 = 75 psi
Cyl 4 = 65 psi
The manual says it should be 127 psi minimum and local mechanic says it won't even try and run without at least 100 psi. Instead of paying the mechs somewhere around $4,500 to have them put in some "rode hard and put away wet" junkyard motor, I am thinking about buying one of these and installing it myself. Anyone know about the quality of this companys work?

http://www.toyotacatalog.net/m1webgear/ProductDetails.aspx?PartUniqueID=8310EF25-6225-4FC8-BB59-37F7DF4A6554

 

I agree with banshee, got to do something, but how did it get in such condition ?

 

I have no idea how it got so messed up. I am very mechanical (currently in aviation mechanic school) and take top notch care of my rides. I don't drive it like a maniac or haul concrete with it. I did however have some mysterious white goo in my fuel tank after using an "on engine" fuel injector cleaning product. The stuff was acidic and ruined my brand new fuel pump. I pressure washed the fuel tank, sprayed carb cleaner through the fuel lines, cleaned the injectors and put a new fuel pump and filter on. The acidic goop made it through the fuel filter and injectors because there were really hard white deposits on the injector nozzle. I just checked all my intake and exhaust clearances and they are all in spec. I've heard about an overly rich mixture washing the oil off the cylinder walls and making it lose compression. A mechanic told me for that to happen I would have been leaving a big black cloud behind the truck. I keep hoping for the best but am expecting the worst. I am going to take the head off later on in the week to see how much my pocket is going to hurt. Here is a picture of the goo in my fuel tank:

 

I think the only mistake you made was to put your on engine fuel injector in the tank. I don't know what kind this is, but there are two kinds, the one you put directly in the fuel line before the fuel rail with a special machine that usually shops have and the kind you put in your fuel tank. You see where i'm going with this.
Compression tests are not that good indicators of what could be the trouble. If you really want to know what is the problem, do a leak down test which consists in putting 100psi in a cylinder and looking how wuch pressure stays in.
Then if you put 100psi and the cylinder only holds 25, the air that is lost has to go out somewhere, either intake or exhaust valves, past the rings, head gasket, whatever and you can check that with either a lighter, or your hand and by intake vacuum hoses...Anyway, I'm sorry for you and your engine and good luck with the new project. First time I ever see that by the way.

 

where you located raider? also LC engineering is a very good company I have dealt with them in past for 20R and 22r performance parts

 

I'm in Memphis, Tennessee. I am trying to get a hold of a compression leakdown tester to give me an idea of where my compression is leaking. Harbor Freight has one for $30 that looks like it will do the job.

 

wow that sucks good luck