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I'd rebuild it. A rebuilt engine will be better than new, and probably cheaper. Think about it- If you rebuild, you'l use all stronger parts- forged rods and pistons, stiffer valvesprings, etc, etc- where as if you just replaced, you'd have the stock internals.
As for your idling problem, try adjusting the IACV on the throttle body- it should fix your problem. If it doesn't, just replace the EACV. It'll take all of half an hour and cost you maybe $50.
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