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Original engine means the engine that came out of your car before the previous owner put the new motor in. A 'similar' engine is not considered as an original engine. Talk to the PO. If you can find/buy the original engine even at the cost of shelling a few $$$ it's worth it.
Here's a shout out from another "bubble back" 4 spd owner. I'd say you bought that car well, and would not lose any money by having it painted. Mine is black with red interior, but I'm not sure I don't like the red on red better. Congrats on the purchase, and I'd keep it and make it even nicer.
With all that is said that car is worth much more as it is than what you paid for it. A driver project will go around $8k and when your 78 has new paint, new interior and considering everything works it could be valued from $12 to $17K. In this econemy it could vary.
I looked at a lot of Vettes before I traded for mine and I can tell you that they are not cheap and no one wants to give a nice driver away. A Vette in the condition that your appear to be in with no rust issues is worth keeping if you just want to enjoy it.
I have had both rubber and steel bumpers and I like both. Some will try to tell you that our car are not worth anyting. That is just not true.
Look up a 78 in any of the sale media; no one is giving away nice Corvettes regardless what bumpers. And yes the 68-72 is still bringing a preimium.
Even tho the ZZ4 has the air cleaner it came with from Chevrolet, I think I still want to put a L82 cleaner assembly on it, if I can find one cheap enuf. I also need to find an ignition shield for it.
Designer Imagines A Corvette That Looks More Like a Corvette Than the Corvette
Slideshow: A Jaguar designer's personal project imagines what a modern front-engined Corvette might look like if Chevrolet revisited the golden age of the Stingray.