2001 F250 119k miles - help!

[highcaliber]

This is such a cool site! I didn't know it existed until I bought this truck. Now, see if anyone can give me some advice...

I just bought a 2001 F250 supercab longbed with an automatic transmission and 119k miles. It bellows white smoke all the time. The local diesel mechanic ran a compression test and told me the #8 cylinder had no compression. He suggests that it is a bad ring and the entire engine needs replaced. I kind of figured this whenever I bought the truck. He said if I could find a used engine he would put it in for $1500. I thought that sounded a bit high...is it? Also, what would be the most economical avenue to pursue to find a used engine. The local salvage yard quoted me $3500 for one without a turbo (I'd have to use mine). I see reman longblocks on ebay for $2700. What year model powestroke engines would be interchangeable for this truck? I really don't care how many miles they have on them. I just want to get this truck on the road as cheap as possible. Thanks for you help!

[014x4cc7.3]

I do not have it here, will look when I get back to work, I saved a link to a Ford dealership selling brand new 7.3 engines with turbo I think for around 7K. If I find it Wednesday I will update this thread with it, maybe someone else here knows another source. Hopefully your engine is not as bad as the mechanic said, maybe it is another problem and someone on here will step up and clear it up for you.

[highcaliber]

OK, thanks. Hopefully, someone can help.