Replacement/Alternative Turbo Diesel engine?

[2 B2s aint enough]

I seem to have a problem with my beloved B2 passat Turbo Diesel, which seems to have turned from a smooth 1.6 four pot into a 1.2 three pot that sounds and smokes like a knackered old lister cement mixer. Its spat its oil out and turned its water black, head gasket I thought, then removed the head to discover it also has a holed piston.

With the cost of a rebuild been out of the question Im in the market for another 1.6 CY Turbo Diesel engine but I realise these are not that common anymore so Im toying with the idea of a later unit. Im quite happy to fit a 1.9 TD if it will go in if I have to, does anyone know what will go in and couple up with the gearbox etc without too much hard work?

If anyone can help with either an engine or advice please let me know, I miss my old pissrat.