If you're mechanical, why not rebuild the engine yourself? Provided your block isn't too whipped out to be bored. I did one for a friend (a 94 in fact). I got hypereutectic pistons which were flat tops to bump the compression up a bit, installed a larger cam - pretty much the standard "RV" profile which is about one step up from stock, and put on headers with 3" duals and v-force mufflers, and of course got the crank turned and installed reman-ed heads, dbl roller timing chain, hv oil pump, etc. We also replaced the manifold temp sensor and oxygen sensors and some misc. other stuff like new plugs, wires, cap, rotor, hoses, belt, etc. Total investment for everything (including the exhaust) was under $1500 and I knew exactly what I had. The thing ran very well and had lots of power-way more than stock. It was very relaible until he sold it a couple years later to buy a brand new truck. We figured this route was better than a re-man long block b/c we knew exactly what we had and that everything was put together right. Plus, we had a more powerful engine.
If you didn't want to re-do it yourself, make sure to check prices on GM crate engines too. Long blocks are cheap, and last I checked they carried a 3 yr/50,000mi warranty.
Another option would be an upgrade to a Vortec engine, as there are thousands of these trucks out there, but you're taking a gamble buying used as was mentioned before.
Don't be intimidated on doing the work yourself. If you don't you will be paying a small fortune in labor for a job like this, even just having someone replace the engine. Get a haynes manual and take your time and go to it. If you can turn a wrench and read you can do it! These trucks are very simple to work on.