Subaru Impreza wrk 2002

Engine rebuild carried out 01/12/2004
39000 miles on clock since rebuild
Big end bearing set std size
Crankshaft STI 9 EJ207
Bearing set crank
Idler belt
Gasket and seal kit
RHS Rocker cover gasket
LHS Rocker gasket
Gasket rocker
Belt timing EH2
TSL forged piston and rod set
Hyperflow FMIC STI V7
Thundercat down pipe
VF34 turbo new

I noticed oil leaking by the turbo last week. The car was not overheating at all. I drove it to the garage to a mechanic who specialises in Subarus and he said the high pressure oil feed pipe had braided. At the same time I asked them to change the oil and oil filter. Millers 5.1 and a K&n oil filter. When I drove the car away I noticed the engine was hotter than normal. I thought nothing of it until a week later when the gauge hit the red. I checked the coolant and it was way low. I topped it up and drove back from work. The temperature gauge was steady on half and then the car stalled at a junction and died. I noticed the temp gauge was high into the red. I checked the car this morning. The oil and oil filler cap are clean. The rad has an orange colour. Don't know if that's the coolant as the water looks clean. The plastic oil reservoir has oil in it as I took a turkey baster and put the coolant in a bottle. The oil rose to the top.

Question is;

Do I need an engine rebuild
Should I just replace the engine
Do I scrap the car and start again

Any suggestions appreciated

A very depressed Subaru owner