Oil in my intake

If there was no oil in the coolant, radiator....or vice versa, no coolant in the crankcase oil, he had no business taking the thing apart to begin with. It got only 3/4 of the way up on the temp gauge? Yeah, that's hot, too hot, but not in the red, meaning sure, it needed something, water pump, thermostat, whatever to correct the overheating but just because it got hot, especially for that short length of time, does not automatically mean a head gasket id blown. Possibly, sure, but 3 miles to the shop? You did the right thing by stopping, but never never, as you hopefully learned with your action, don't pop the radiator cap on a hot engine, even an engine at normal operating temperature. The pressure inside keeps the coolant from boiling, and when you relieve that pressure it suddenly is at normal atmospheric pressure, it will immediately begin to boil. Anyway, what engine do you have? Is it a V-6 or V-8 with two heads? If so, how the heck would he know which one it even is in the unlikely event the gasket was blown? As for the oil, my first clue is that a mechanic that will carry a part across his garage floor dripping oil is something that raised a flag with me. It will have oil on it, it's supposed to. Then suddenly announce you need a new engine? Uh uh. no. Not saying WHY a new engine? OK I got a bit long-winded here, sorry, but sounds to me, if he can not give you a good reason, and PROVE it, he is ripping you off. Big Time. Solution? Another, reputable competent, shop, don't pay the dude a dime, he may threaten to not release the car to you unless you pay, but if he already has the head off it's going to need a new gasket anyway now. Have it towed away. If I was in you shoes I would be quite pissed off.

I missed the part where you said it was the 3.5. Doing the math, your first engine blew at 60k miles and 4 years. Let me guess...it was the same mechanic? When it comes to salvaged engines, those guys lie like hell about miles. Every one they have has 20,000 on it. Did you see the car it came out of? Hindsight is easy, too easy for me. Where was it wrecked for the insurance to declare it totaled? Plowed in to something, front end? Or hit from rear? I'd really like to know if it was the same guy.