Joe, let me tell you the story of my first airplane....
I was about 24, had moved to Houston, and was living on pot pies and frozen pizzas in a one-bedroom apartment. I got the opportunity to buy the airport rent-a-wreck for $4900 - an AA1B that had been ridden hard and put away wet far too many times, but it was airworthy, and it was mine. the engine burned/leaked a quart in 3 hours, but hey - it was mine, it passed annuals, and I could fly!
Twenty-three years later, I sold the airplane with an upgraded engine, new paint and interior, full IFR panel, etc, etc....I have a friendly A&P that let me do all the work over the years, and all it took was the patience to not want it all at one time. And yes, I learned the hard way that cheap is expensive, and quick usually means you have to slow down and do it over! I was constantly fighting little problems until I realized my engine had done it's service, and it was time for a fresh one (actually, a fresh overhauled one!) - no problems after that!
Sounds to me like you probably have a great airframe - your problem is up front. You didn't say if this was a new engine, or if was previously flying - I agree with everyone's advice on the details, but might suggest that it is time to learn to do an engine overhaul. If it is a fresh rebuild, all it will really cost you is new seals and such - take it apart, and do it again, being careful with all the things that lead to leaks. I'd build it stock - all this talk of drilling out jets, etc is beyond my understanding - I bolted a stock O-360-A1A on my airplane, and it runs just the way the factory intended. Complicated alterations usually mean that there is some other fundamental that is not right. Decades of experience say these these things run fine as they were designed.
Overall, stick with it - but maybe you'll just have to slow down, bite the bullet, and take some of the time in the many years you have ahead of you to do it"solid" - then you can enjoy the heck out of it!
Paul