Engine Rebuild?, Is it worth it? Options

[CoolDoctorJ]

Ok, so the blue smoke on startup is the valve seals. Here's a question:

Do the valve seals get replaced when an engine is rebuilt? It sure looks like just replacing the seals is almost the same cost as completely rebuilding the engine. If that's the case, I might seriously consider it.

The car has 90,000 miles on it and it puffs blue smoke when I start it. What are the benefits of rebuilding the engine? If it's going to be rebuilt, are there any improved parts I should use? Keep in mind that I "don't know cat piss" about how to take apart an engine, so I'd be having it done professionally and paying through the nose for labor.

Some might say I should swap the engine. My concern with that is I would want to switch the AT to MT (more money), and I don't know what putting a ridiculous amount of power into my car without changing anything else would do to it. That and I'm paranoid so I'd want to rebuild the new engine anyway before putting it in. I really can't afford this option.

Let's assume I have $1500 maximum for this project. In any case, I must replace the valve seals somehow. Should I rebuild while I'm at it, rebuild with improvements, just replace the valve seals, or shut up because I don't know what I'm talking about?

Thanks!