Thank you for all of your car advice. What we ended up doing was selling the Accord on Craig's List, listed with no engine. In less than 24 hours, five people contacted us with two people making offers. We sold it this morning for a mere $675, but this was more than we would get for scrapping it to the mechanic. So, with that extra cash in hand, we continued shopping. (btw, I now love Craig's list!)
This week we had test driven about 5 different cars, checked out many online, and then drove another 7 today. We fell in love with the last one we drove, a 1999 Infiniti G20. This is far better than our last car with good gas mileage. It even has the luxuries of heated leather seats and a Bose sound system. We've never felt so spoiled! We'll have our mechanic take a look over Tuesday, and if all is well, we'll be the happy owners of a Nissan that evening.