First truck: '87 b2000, NEW ENGINE?!?!?!?!?!?

Hi there, Just bought my first truck ever (1987 mazda b2000) from a private party here in Hawaii.
I was told there was a small oil leak from the cylinder head when i bought it.
on the way home it started smoking and dropped lottsa water and a little oil. i let it cool before i put more water and oil in it. it stared up fine, then about 30 mi. down the road it started smoking BAD. stopped and checked the oil and it was clean and full. another 15 mi. and the oil temp. gauge dropped to below cool, some sputtering, and engine died. there was no oil left. i put in two quarts and it refused to start again. towed it home, replaced the rubber where water was coming from, and two of four spark plug wires look shot.
I just need to know if its worth trying to diagnose this or if the engine was shot on my drive home and i need a new one.

any help is very appreciated as this will be my very first project!

holy shit. i hate to say it but she may need a new motor. maybe you could fix that one but by the time your done you might as well get a new one cause if u lost oil and didnt know it, shit could be toast in there. could have cracked a head or block. i wouldnt go any further than removing the head to diagnose. what rubber were u talking about? and did u happen to see where the oil and coolant was coming from?

not exactly sure what the hose is called, water was flowing from the radiator down to the left and leaking out a hose toward the back of the engine. it is no longer doing that.
Coolant was dry as a bone, i filled it with 50/50 before trying to drive home, no leaking there.
oil was coming from the top of the engine block where it looks as though there should be a vacuum plug or something ( i have no idea!)

Feel for you buddy.
It may have been salvageable before running it dry and it coming to a spluttering stop.
When the temp gauge does that, it means the sensor is no longer IN any coolant
If she's going to be a project, throw some love at it and drop her in a new engine
It's going to be a full pull down anyway.
You'll probably need a new head, good chance it's no longer straight and I bet those big end bearings aren't looking too flash neither are the cylinders/rings.
Now it's just a case of finding what kind of engine you want to put in there, something different or the same thing but in better shape.

pic of where the oil was bubbling up from. i dont know if there was supposed to be a plug or something in that little hole there.
i appreciate the help!
any idea how i should go about finding a good engine for this? ebay? how much does it generally cost to have a mechanic take out the old and in with the new?

thanks guys!

That's a cylinder head vent should go to the air cleaner.

Oh dear god....
At least it has a carb conversion and a set of headers
jpg
One of those?
Is the other hose out the front has the PCV to intake right?
Cusser, a great and good man, has me confused.

I just checked out the rotor and distributor and its getting a spark all the way to the plugs..... i pulled out one plug and tried to turn it over and water shot out of the spark plug hole. if its not already apparent, im not experienced at all! cracked head? is it worth overhauling or should i look for a whole new engine?

I wish there were more opinions on this thread!

Check to see how much a new engine is.
Keeping in mind you already have an intake and headers and box.
If it's reasonable then jump at it.