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964 engine rebuild, possible 3.8 conversion

Engine

Vehicle Information: Year: 92; Body Type: Coupe; Total Mileage: 102,000;

I own a 92 C4 that I love but it is leaking oil pretty bad. I took it to Curry Auto repair in Sterling, VA and they quoted me about $2500 to drop the engine and reseal it. They also suggested an upgrade to a 3.8 at an additional expense but with a 50-60 horsepower gain. My questions are: Will I get that much gain?; Will I have a bunch of problems?;Is this a common upgrade?;What else will I have to upgrade along with it? Thanks!

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