'04 Aveo Engine Issues

[Konstantine]

Hope you guys can help, as I'm getting desperate with this car...

Anyhow, basically what happened to my little automatic 04 Aveo 5 was that my timing belt broke 3 days before the appointment to change came (just my luck).
The car is slightly out of warranty so dealership work is out of the question (yes I know I waited too long to change the belt)
I took it to a local mechanic who told me he could get me a replacement engine (2006 - 15,000km) for $1900 to which I agreed to.
He replaced the engine, and 2 days after I picked up the car (and paid him) the check engine light came on, as I drove it back to his shop the check engine light began to flash and I noticed it wouldn't shift into 4th gear.
He kept this car for a month trying to figure our what's wrong, claiming he has no clue what the codes mean.
(P1781, P0300, P0700, P2610)
I got pissed and took it to a dealership myself since he was getting nowhere.
Dealership came back to me and said that the sparkplugs & wires were no good (he installed my old ones!!)
and that in order to do a proper compression test I need a tune up.
So I shelled out the $300 for the tune up, and $100 for the diagnostic.
Now codes P0300 and P1781 came up (random misfire & Engine Torque circuit/Transmission Control Module)
Dealership quoted TSB #05-06-01-030D and said I need new valves, seals, new cylinder head gasket kit.
That's another $2000 dollars in work!
My local mechanic insists it's a transmission problem
The dealership insists it's an engine problem
And I'm ready to kill them both.

HELP!

Has anyone else had to deal with this?

[compcg]

hey.. I'm having the same prob with my 04 aveo.. my idle is abit rough but I have no shifting problems.(knock on wood). I just recently changed my ignition coil, wires & plugs. I did notice that 3 out of the 4 plugs were shot. I was told I needed to do a camshaft position relearn. any1 know how to do that on an aveo?? now my abs light comes on and I've changed all the pads, abs sensors and still the light wont go off. I think its my abs pump that's shot. any suggestions?