119,000 - all highway, never off road. Can probably get for $2000. Great shape interior and exterior. It is an SE7. The only other thing wrong with it is that one of the jump seats does not latch when you fold it up so it can't be folded away and the passenger side seat will not adjust. The seat is stuck in a good position but I would still probably want to try and fix it.
I don't think you're looking at a good deal. Used motors are too risky, even when they're guaranteed, and rebuilt motors can easily exceed $7500 to buy, ship, and install.
Add to that the $1000 that you'll likely need to repair the suspension (at 120K the shocks and springs are gone), the drive shaft, various odds and ends you mentioned and you're looking at north of $10,000 for a car that's worth roughly $7,500-$8,000.
It would be cheaper and (oh so much) easier to buy a Disco that's in good running condition. Be sure to have it checked by an LR specialist beforehand. If a running '04 is out of your budget, look at the '99-'02 models. They're mostly the same cars and can be had in great shape for under $4,000.
All that said, what do you mean by "the engine is blown"? Does it run at all? What is the previous owner telling you?
Thanks for the advice. Found a few in 2002-2005 that claim to be in good shape from $4500-$6000. I assume from your comments that it would be smarter to go with one of those (all 90-130k miles) and expect to rebuild the suspension. That correct?