If you pay $350 for a TD04, I'm going to drive to Boulder and hit you. If you pay $1000... well there is no hope for you.
There is nothing wrong with a used TD04 as long as it looks to be in good shape. If you just need a replacement, go that route. With a little hunting LOCALLY (so you can look at it before you buy; take someone who's seen a few turbos and knows what to look for if you don't) you should be able to catch one for under $150. Which is really what they are worth. And you could buy 2, almost 3 for the price of that rebuild if you happened to pick up a bum one.
Now if you were thinking at all about an upgrade, now is the time... $350 is VF39/43/48 money and for around $1000-1500 total, you could do a nice turbo/DP/tune/injector basic setup.
Also, do you know why to old one died? Figure this out before you stick another one on there. If it has to do with oil starvation, get that fixed first.