Ok, here we are 20 posts later and it brings us back to Andrews original post, that the car may possible be a good choice for a "Hemi" transplant. I said, if there really wasn't any actual water damage to anything but the engine, would $10k be too much. I also added, it may be a nice project for a backyard mechanic (meaning no actual labor cost other than "sweat equity").
I think the LKQ salvage co. had a XF engine and tranny for $2,800 on ebay a while back, but don't quote me, because I'm not positive. I wouldn't be surprised if you couldn't find a hemi engine and tranny drop out from some salvage yard for that same price, or less. To do a satisfactory engine swap (assuming it would actually fit in the first place) you would have to change every electrical connection under the hood anyway, so if there was any water intrusion there, it wouldn't be a factor.
The whole idea would be one giant undertaking, but I'm sure more complicated swaps have been accomplished.
And who knows, it may sell for even under 10k. It would just be a little more reassuring if, (as I said before,) someone who knows a little about cars could actually take a look at the car before any bids are made.