dblank, did you find the cause of the coolant in the oil? cracked head, bad head gasket, bad intake gasket, corroded intaked, cracked block?
just because there's coolant in the oil doesn't mean the engine is immediately toast.... shortly after I bought my '96 I found out about the intake manifold leaking problem with pretty much all the vortecs. The engine started to knock really bad at start for a minute or two then smoothed out. Replaced the intake gaskets, did an oil change and the knock was gone. I also did stick some large magnets to the oil pan just in case there were any ferrous-metal particles still floating around in the oil system - that was 25,000 miles ago.