I recently turned 40 and finally bought myself a 76 Spider (w/ an 81 engine - it was a late night impulse buy on Ebay). It ran OK for a few hundred miles, but then it would die after the engine warmed up and wouldn't start again for about an hour after the engine cooled down. Now it won't start at all. My buddy who is a boat engine mechanic says that the engine needs to be rebuilt, mainly because of the blue smoke coming out of the exhaust and he said the exhaust smells like radiator fluid. Also the distributor cap is really lose - it can turn 3 inches in each direction. Based on this little information, do you think he's right?
I have a friend who has rebuilt an engine before and offered to help, and my neighbor has a cherry picker and engine stand I can use, and he also knows a professional who can bore out the cylinders if needed. One of the reasons I bought a Fiat is that I read they are easy to work on. So, that said, is this too big of an task for a newbie like myself to take on? The only engine I've ever worked on was a 31 Model A when I was fifteen, so I have a lot to learn to say the least. I was looking for a real hobby and am eager to learn, I have a shop manual, a couple friends (granted they are not at all familiar with Fiats), a garage and all the tools needed. What could possibly go wrong, right?

Thanks,
Tyler