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AC 416 blown engine need transplant

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OK, I seem to have figured out the hydro trans and it's minor problem. Now I find that the Kohler 16 HP is so far out of spec (.0003 on crank and some doubt on the cyl.) . Who has put another type engine in these? I would get a new Kohler, but $1,200 or so is a bit rich for my budget. Anyone know where I might find an engine or what might work. I was thinking of a 4 cycke snomobile engine or some such. Finding something with output shaft on both ends would make the surgery a lot easier, but am open to any suggestions.

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