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budget minded swap
I might be getting a 1979 ram 50 4x4 for cheap with a bad engine. But as far as I can tell there aren't any 2.6 engines anywhere nearby. So is there maybe an easy engine swap for these trucks for around $600-$1000? Or maybe someone in the colorado springs/pueblo area has a 2.6 in decent shape?
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Welcome to mightyram. If you're going 4x4 you won't be doing it for that kind of budget unless you have a wrecked donor for cheaps. If you can turn a wrench you should be able to fix the existing engine for the budget you've set (unless if it has a cracked block or something equally catastrophic). The 2.6 is a robust hunk of metal and, although not a HP monster, it can handle a world of abuse.
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Can't remember if he said it just spun a rod bearing or completely threw the rod. Either way I'd say best guess is that the engine it has is no good. I'm fine with converting it to a 2wd just to get it back on the road.