Lost power in #3... did the timing belt break, by any chance? Interval on a 2000 with the stock timing belt components (they can be retrofitted with the 2003 100,000 mile components) is 60,000 for manual, 40,000 for auto.
#2 and #3 are the first to interfere, IIRC, when the timing belt breaks.
But, $3,000? Heck, you can get a replacement engine for another $1,500 if you look around enough, and maybe have a good 2000 Jetta for $4,500, which is a hell of a steal.