Sorry to hear

That is the one failure that scares me the most when it comes to owning a diesel truck.
Imo you take a huge gamble when buying a replacement long block from the majority of suppliers. For the most part a warranty and lower cost don't give me peace of mind in this situation. For one it is a very time consuming process to replace a PSD engine whether you do it or pay someone else replacing the engine alone is a huge cost that you don't want to do twice. And two: getting stranded in the middle of nowhere could prove to be a nightmare especially in the places we all love to explore. I have had enough bad experiences with long blocks that I will not go that route again.
If this happened to me I would have the engine overhauled and upgraded by a shop that specializes in Power Strokes. There are also many internal upgrades you can have preformed while it is apart. Getting it balanced and blueprinted is a good idea too. I guess it all depends on how much do you love your truck and how long to you plan on keeping it?
These shops are near me in No. Utah. I know these shops aren't anywhere near you, but they know their PSD's
http://www.wideopenperformance.net/default.aspx Maybe they could give you some specific recommendations. And
http://www.moonlightdiesel.com/ has rebuilt two PSD's for friends of mine. Terry is extremely knowledgeable and happy to help. Best of luck.
Andrew
I highly recommend getting a factory service manual for your year of truck. For Dodge's, the Chilton's manual leaves a lot to be desired; I would assume it is the same for Ford. As far as long block or replacement motor, I would do a rebuild on your stock block by a reputable shop or consider a replacement from another truck or from Ford/International. I don't think I'd get a replacement longblock from the typical chain rebuilders. My dad had two in a row go south on him in his 93 Chevy with a 6.5. Not apples to apples, but it is my .02.
I agree with this ^