[gtknapp]

I have a 2001 Bonnie Supercharged SSEi with 109K miles. The check engine light came on last week. Then the engine died. It would start for a few second then die, multiple times. I had the car towed to the nearest repair shop. They replaced the Mass air flow sensor and charged $300. Drove the car for a day and it was sluggish and the check engine light came on again. Back to the repair shop and they replaced the spark plugs, ignition wires and did a fuel induction service for $325.
Drove the car for another day and then the service engine light came on again and the engine was running very rough with little power. Drove the car to the dealer where I purchased it new. The dealer said the right bank of spark plugs were only hand tightened which caused the plugs to over heat and completely incinerated the tips of 3 plugs and melted 2 ignition wires. Also said the #5 cylinder has no compression and the exhaust values are damaged. They also indicated that they would have to remove the engine head to determine the exact extent of damage to the engine to determine the complete cost to repair the engine.
Questions since money is tight right now. I live in the southeastern part of New York state.
Would it make sense to repair the engine damage or just replace it with a rebuilt engine?
What would be the approximate cost to repair the engine?
What would be the approximate cost to install a rebuilt engine?
What can I expect as a reasonable settlement from the repair shop?
Thanks for any advise you can offer.