Tacoma in great shape, hole in frame :( Fixable? Sellable? Worthless?

I would try and have it fixed, also have the rest of the frame thoroughly inspected while your at it. Don't go to Toyota about it, though, on a '97 they'll just want to buy it back and then have it destroyed.. These little brutes don't deserve to die because of a little frame rust! Any competent welder or fabrication shop can fix it. I'd highly recommend injecting some form of rust stopper into the frame itself as well to halt or prevent any rusting in it's tracks. I've injected the inside of my frame with used motor oil and haven't had any problems with that. Doesn't cost me anything and seems to do the job. If you want to go the more politically-correct route, use that fluid film stuff everybody here talks about, seems like a good product. As far as the outside of the frame, just keep it clean. My truck takes a visit to the carwash once a week during the winter and once a month at least during the summer. Many of my friends poke fun at me for how spastically clean I keep it, but a clean truck lasts longer, Tacoma or not clean is a good thing!