Yea, Crowley Marine lists a complete 4.3 reman for $3300 with a 1 yr. warranty + a $150 core charge. You can get an SEI for about 2 grand with shipping with a 3 yr. warranty. I think it'a a no brainer.If the upper is trashed then all the metal shavings are in the lower section too.
You also need the correct gear ratio drive for the 4.3
You may want to do the SEI conversion.
http://www.sterndrive.cc/mm5/merchant.mvc?Screen=PROD&Product_Code=9D-116&Category_Code=Cobra