help! leaking engine black '84 brat

[bratgirl]

Hi:

 

Bought a 1984 Subaru Brat off ebay 2 mos ago, seller lied about engine leaks. I had my usual mechanic go over it, replaced rear seal and just about every seal he could lay his hands on. Get it back, still leaking like crazy. Took it back, he put in that glowing stuff, (I did get to wear those cool goggles), and he shows me that it is leaking around the block. He says he had trouble getting upper bolt to tighten, thinks there is a hairline crack maybe. We're thinking replacement. Of course I'm not a happy camper because I just paid too much to have every seal replaced!!!! What do you guys think about this? Where can I even find another ea81 engine (I'm biased against rebuilds)?

 

Any help is much appreciated! This is my dream car, I am an extremely proud Brat owner, and I want her to run forever!

 

Thanks!