04 timing chain got me...what next?

[oinkjackson]

OK Stupid me...I bought this car six months ago with a little more than 60,000 miles on it. I didn't even think about checking or replacing the timeing chain. Now the car is sitting at the dealer's lot and they want $5000 to put a new engine in it, a thousand more dollars than I payed for the car! So, what is the best option, rebuild the engine, replace with a used engine, or look for a different car? I don't know how severe the damage is. What are the chances that the pistons are still ok and I can just do a valve job? Thanks for any and all advice you can provide. What is this mistake, of not replacing the timing chain in time, going to cost me?