Hi,
A lot of this depends on which '79 Ericson you have. What is she? Obviously, if you are talking about something like an E-27 (just sold mine, so I have a good feel on the market, or lack thereof), you can't possibly pay someone to do this and come out ahead. As stated earlier, if you can do all the work and find a drop in replacement for under 1K, it may be worth it.
Does your current engine run? If it is usable, even if it smokes, you are probably better to "adjust" the price by 500 bucks and see what happens before you invest the time and energy in it.
Of note, I repowered my E-27 before selling it because I didn't think I was selling it at the time I did the repower. If I hadn't picked up a replacement engine for $500, and did all the work myself, I could never have come out on top of it in the long run.
I hope this helps some.
-David
Independence 31
Emerald