Sorry, So. Cal. That's still too much money! There are definitely worse engines to change. That is what I'd do. See if you have any independent Lexus or Toyota repair shops in your area. Any shop that works on Toyota should have no problem changing a Lexus engine, they're the same thing. I personally probably would stay away from "General" independent shops that work on ALL brands of cars. Not saying they couldn't do a good job, just better to have someone who sticks with a particular brand.
Stay in So. Cal. way too hot here... Anyway, thanks so much for the help. I spoke to a dealer alternative Lexus repair shop who told me they have good success with JDM motors. He said that he could install one with less than 60K miles on it, including labor and 12 month p/l warranty for $3,000. Thoughts? Any experience with these Japanese replacements? Also, any suggestions on what I should have him replace once the motor is out. timing belt? anything else, and for how much? Sorry for all the questions, but you're a great help so I thought I'd keep pushing you...
Thanks!