If there is over 150K miles, I'm surprised the 2.8L is still running, but, they were/are dependable engines if maintained in its life. You fix this problem, what & when is the next one?
They are throw-away engines. You can get a replacement and also, since its is carb'd, GM has a 3.1L & 3.4L to replace it. GM still sales 2.8L long block for about $1600 USD.
If you are contemplating a V8, you will need a different transmission, as the bellhousing bolt pattern is a 60* V6. A standard SBC trans will not bolt up.
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