I read enough of your posts and communicated with you enough to know that you can handle whatever needs to be done on this engine. Here are my thoughts on what to do:
Since the 200 isn't running, you don't really know the condition. What you can expect probably depends on how well you know the current owner. That said, it should be well worth $1,000 for the sheet metal and a rebuildable engine. Most of the sheet metal and the fuel tank are identical to the 130. The grille support (the shell around the radiator) is a different part number. But since the nearby parts are the same, the support can probably be used (maybe a little trimming at the bolster??). The only thing it doesn't get you is fenders, if you need to replace them.
I would get the 200 and try to get the engine running. If it seems to run OK, I would swap it into the 130 and continue to use it. I'd reuse the recently repaired components (clutch etc.) from the 130. If it continues to check out, I'd move the fuel tank and sheet metal in a separate step.
If the 200 engine doesn't perforn well enough, I'd then overhaul the original 130 engine and swap it back in. If the 130 has never previously been overhauled, you probably can just reuse the crankshaft as is and go back with standard bearings. But with the engine out on the bench, it is pretty easy to pull the crank and get it measured. If I didn't have the proper tools, I would take the crank shaft and assembled head to a machine shop for a valve job and to get the crank checked and turned if needed. I'd try the same shop to source bearings, sleeve set and gaskets. If you aren't comfortable doing it yourself, let them swap the connecting rods onto the new pistons. Heck, once the head is off and you see the ridge on top of the cylinders, you may find it only needs rings and you can reuse the sleeves and pistons. Again, the shop can give you a final call on that (based on total wear and how out of round the cylinders are). Since you haven't done major engine mechanical work before, get and read the proper IH repair manual. It will answer questions that you won't think to ask before getting in trouble.
I assume your current quote for an engine job is assuming a worst case situation where everything needs regrinding or replacing. You can probably do it for a lot less, depending on what is actually found. One other comment, I imagine your prices are in Canadian dollars but suspect many of the responses are in the context of US dollars. That can be very different.
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