1998 3rz fe 4x4 fix or not

Ok taco world, need some advice. My current situation is this:

1. December, 2015; more or less my clutch went on my truck. 4th and 5th gear barely do anything, 3rd gear works half way and was using 1 and 2 as much as I could. Got a clutch kit, fly wheel, master and clave cylinder from rock auto to bring my truck whole again.

2. While waiting the week for the parts to show up to fix my clutch from rock auto, my harmonic balancer when in the truck too. Long story short, I guess the massive bolt (at 194ft/lbs) came loss, allowed the balancer to come loss and it broke the wood drift key in half that helps hold it into place. I managed to get it off the truck and there appears to be no damage to the shaft it sits on. I have the balance currently.

3. I have a power steering leak, that I found. it is part of that molded piece in the front part of the truck. Was just going to replace this with an aftermarket kit from rock auto.

4. I have been leaking oil and wasn't sure from where. This situation allowed me a close look at the truck and the oil pan is leaking from welded joints on the bottom part. Probable from all the salt from NJ/MD over the past 14 years.

So, I never got around to the fixing the truck. Parents where getting a new car and gave me their old better, that now is starting to have issues (don't get me started on this sedan)! I was either going to junk or sell the truck. I really wanted to fix it, but didn't have the money at the time. I was just thinking of putting a new engine in and didn't have the time or money for that. The truck has 222K miles on it. not rust on the frame, besides around the back leaf springs, etc. But this looks more like the paint peeling than anything else. fast forward to today and my dilemma is this......

Do I open up the valve cover and see how the engine looks on the top and try to get a look at the chains and guides for were... If everything looks good, then drop the front diff as much as I can without taking totally off, take off the timing chain cover, replace the oil pump and water pump (maybe even the timing chain cover depending on things), replace the oil pan, and depending how the sprockets, guides, and chains look them shelves too. While I am at it, going to do the thermostat too. put all back together, make sure truck runs, timing is good, then do the clutch.......

So am I just going down a path of no return, with an engine that has 222k on it? Am I crazy and should a new engine be installed and not worry about this. All I have bought so far is the clutch stuff and the balancer. Not invested to much yet. Also, how much time would I be looking at to do this ( I am mechanically inclined and have rebuilt small engines before.) Want to keep truck for a few reasons if I can and it makes sense. I can post pics if need too. Any thoughts and advice is welcomed. Thanks.

Gimp

 

I would replace the clutch and start from there.

 

Pic of the crank? I'm a little confused when you said that the keyway (?) was damaged but the crank shaft wasn't? That would be the main area of concern if it's messed up and now you won't be able to get the engine to time.

If it were me I'd just remove the engine and seal everything up, throw a new clutch on it, and drop it back in - it'll come out better and probably take as much time.