Jeepdad,
Sorry to hear about your son's engine problems. There isn't a whole lot of demand for the early model JK's with blown engines. The 3.8L has a bad reputation. If it were a Rubi with the Dana 44's, 410 gears, lockers, etc., I could see you getting $6k for it as-is. But I think a Sport, X, or Sahara will probably net you closer to $4k - $5k. Depending on the overall condition of things like the interior, paint, transmission, etc.
Just my .02, I am not a professional and did not stay at a Holiday Inn recently. So I could be off.