as is. Unless you've got a perfect buyer, a car will always be worth more stock, even if it is busted. You probably wouldn't get back what you paid for the motor, and you definitely wouldn't get back enough to make the hassle worth while. The guy you know just got lucky and found someone who wanted a hot-hatch and didn't mind paying too much.
If you've got spare time and tools, however, you can pick up D-series motors for pretty cheap. But thats really the only swap that *might* be *somewhat* profitable--still a pain in the ass though. I'd sell it as is.