Sounds lika a blown head gasket.My 7mge was running perfect withb 240000 on it,pulled it out a month ago to fit a 1j and manual.It is available cheap in Brisbane.
You probably have the option of repair or replace.Occasionally someone gives one away on this forum.Where are you? perhaps ask for a 7m in "wanted".you might get a good one close to home for 4 or 5 hundred.Or repair yours.
Best of Luck.Check out toyotacressida.com cheers.Pete.