no, you don't need to get another engine (yet). you need to find a mechanic
that knows how to diagnose your problem. If your engine was running and the spark stopped but the injectors kept shooting fuel you will get fuel in the oil. You need to find out what it's going to take to get the spark working correctly. Change your oil and see how the engine runs.
how did your distributor melt? What wires are you talking about that broke? Is your mechanic
from a repair shop in your area or is it someone who just says he is a mechanic?