Sitting around a camp fire in Iraq! Hope you got your IFF sorted out for the night time IR painters!
This reply is meant to be general in nature and not aimed at any single individual.
(I have never attempted to do something like this before)
And you never should unless there's someone familiar with the process nearby to help you through the rough spots. Many folks will say
"Anyone can rebuild a 4 cylinder engine"
but that anyone does not include idiots, folks with no mechanical aptitude, folks without basic automotive mechanic's tools and folks that cannot figure out how to change a tire.
When a person who is new at this sits down and builds an accurate needs and cost list for rebuilding an engine he must consider several things. First his own personal abilities. Next his tool box. Then his work area. This equates to a need for an above average mechanical aptitude, a quality collection of hand tools and power tools, and a suitable place to do the work. Short change yourself in any of these needs and the quality of your product will suffer.
1-Aptitude: How much experience do you have?
Have you ever pulled an engine out of a car?
Have you ever removed and re-installed a head?
Have you ever removed and replaced a cam and it's gears?
Have you ever replaced a clutch?
Have you ever replaced a rear main seal?
Have you ever removed and installed a distributor?
Have you ever changed a water pump or thermostat?
Have you ever replaced a rod bearing?
Do you know how to use a torque wrench?
Do you know how to use a micrometer?
Do you know how to use a dial indicator.
Do you know the difference between a 3 and 4 ring piston?
Do you know how to prime the oil system?
Do you know how to do compression tests?
What drives the distributor?
Do you know the difference between a regular bolt and a dowell bolt?
Do you know what a Grade 5 and Grade 8 bolt are?
Do you know how to determine TDC for a piston?
Do you know how to set valve clearances?
2-Basic Tools: Do you have the following tools:
1/4 drive socket set that includes shallow and deep sockets in US sizes 7/32" to 1/2".
3/8 drive socket set that includes shallow and deep sockets in US sizes 3/8" to 7/8".
1/2 drive socket set that includes shallow and deep sockets in US sizes 7/16" to 1 3/4 ".
plus a set of shallow & deep impact sockets US 7/16" through 1".
!/2" drive breaker bar.
3/8" or 1/2" drive speeder handle.
A set of screw driver bits and hex bits and a bit holder for them.
A 1/4" or 3/8" drive inch pound torgue wrench in the 15 to 100 " lb range.
A 3/8" or 1/2" drive torque wrench in the 20 to 150 Ft Lb range.
A hand impact tool.
A set of flex (universal) sockets in at least the 3/8 drive size?
A set of open and box end wrenches 1/4" through 1 1/2".
A set of Crescent wrenches 3", 6" 9" and 12".
A set of flare nut wrenches US 3/8" to 11/16".
A set of flat tipped screw drivers in various blade widths and lengths.
A set of phillips screw drivers in #1, 2, 3 & 4 bit sizes and various lengths.
A set of allen wrenches or allen bit set.
An inch, numbers and letter drill bit set.
Assorted pliers, straight, channel lock, needle nose, dikes and duck bill.
A set of spring clip pliers and snap ring pliers.
3 oz and 8 oz ballpean hammers.
1 Lb hand drilling hammer.
Rubber mallet,
Brass hammer
Steel and brass punch sets.
Drift pin set.
Chisel set.
File set
Hack saw
Rolling wedge set.
small and medium crow bars.
3-Special tools:
Air tools including a compressor, 3/8" or 1/2" impact driver, air drill, die grinder.
Rotary files set.
Sanding and cutting disc sets.
Cherry picker.
Engine stand
Side valve engine valve spring spring compressor.
Piston Ring compressor.
Bench Arbor or hydraulic press.
Cam gear puller and assorted 2 and 3 jaw pullers.
Slide hammer puller kit.
Bushing driver set.
1" to 6" micrometer set.
Dial caliper.
Steel rule set.
Feeler gages.
Compass set.
Level
Tap and die set.
Jack stands.
Hydraulic floor jack.
4-Work area:
Adequate size. Must have a 3 foot space all the way around the jeep.
Must have paved floor.
Proper lighting.
Proper ventilation.
Work bench at least 6 foot long, 30" high.
Bench vise.
$7,000 sounded ludicrous at first until you add up what you need available to get the job done right. If you have at least half of the experience listed above, and 2/3 rd's of the tools and a decent work area already in your possession then $1400 to $2000 is a reasonable estimate of an overhaul.
