that engine sounds like a rebuild to me... 200k miles sounds like its past its shelf life, get the block resurfaced and put in some new pistons and a rebuilt head, and see what happens, but if you do it, do it yourself and get the mechanics manual for the car - nothing beats experience.
The ECU will also be money gone... but if you do it, do it yourself.
Fixing it will cost a lot of money though, so I'd suggest junking it unless you severely love it. In the end, learning about engines is best done by working on your own, and the learning curve is high during a rebuild. Great way to learn, but more expensive in time by far than a mechanic, but cheaper in the long run, because then you have more ability to work on it in the future (and if you rebuild it, you can expect another 100k miles on it at a minimum).
Sorry :shrugs:
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