An engine swap will cost around $10k give or take, don't let others fool you into thinking you can do it for $500. You can't.
Spend the rest on upper and lower control arms (speedtech has the best bang for the buck) and some decent upgraded brakes (baer has good upgrades without going full out).
Maybe look at a coil-over conversion (ride tech is awesome).
Get some decent new seats and a couple fancy gauges and bingo-bango... Brand new ride!
That should be about $25k if you go middle of the road with everything and do the majority of the work yourself.
Shameless plug:
Feel free to pick up this sweet book... it will help with yoru swap
http://www.amazon.com/Swap-Engines-i.../dp/1613250312