HELP!!! I need some advice quick!
I have a 94 Camaro Z28 which I bought in 2008. It's been pretty reliable and I've invested in quite a few things in this car so far. I took it to a mechanic a few weeks ago to have it totally checked up and fixed as it was having some trouble with the distributor. This mechanic fixed the car, putting in a new distributer, put new brakes pads and rotors in, replaced air conditioning compressor, oil change, oil & filter change, fixed oil sensor problem, and removed gunk from driver's door lock due to vandalism, all to the cost of $2500.

Took it home and a week later, I noticed the red check engine light coming on about 2 minutes after I started engine. Shortly after that, the car started shooting smoke inside the car from the vents! I let it cool down and drove it back home. But this happened 2 times again. Finally towed it back to mechanic's shop, where it is still under warranty.

Shop now tells me 'engine is burnt up' and this is something completely different and new since they had it and checked it. Mechanic claims he drove it for 35 miles without seeing any of this current problem! He says it is leaking coolant and to fix this, he says it would require getting inside the engine and possibly putting in a new 'crate' motor, to the cost of about $6000!

I almost fainted! My questions are:
1. Should he have seen this in previously checking the car?
2. Would any of his warranty cover what is going wrong now?
3. Would it really cost around $6,000 to repair?
4. Is it even worth repairing?
5. I've seen a 2000 Chrylser Sebring, very nice condition, that would cost $2900. Would I be better off just getting another car and letting this one go, even if I've plunked more than $2500 into it?

I LOVE my Camaro but I don't know what to do! I personally don't know if it's worth plowing another $6K or $7K into it!

Here is the ad for the 2000 Chrysler Sebring:
2000 Chrysler Sebring CONVERTIBLE -- Only 110k Miles -- Summer Fun!!

Here are 2 pictures of my 94 Camaro:

http://imagehost.vendio.com/a/82464/view/goldcar2.jpg

 

Shooting smoke (steam) from the vents happens when the heater core springs a leak. Depending on how much coolant you lost, you could have overheated the engine, and did that 3 times. It's very possible that this may have been what caused further engine damage. At this point, your car is of value to someone who can do their own work to fix it, as you'll be buried financially, having invested well over twice what the car's worth, when paying someone else to do the repairs.