Mate good find!
If it was me i would put the running motor into the 98 and get it on the road quickly, then fix up the 94 rust while i look for a spare motor, whether it be tdi, isuzu or v8.
That'd be the quickest way to get one on the road. The 300tdi's literally have 2 (or maybe 3 - i cant remember) wiring connectors. It's one of the simplest motor swaps. With the right tools, and engine crane and a mate you could do it in a day no worres.
I have no ideaon legal requirements of motor swapa in WA tho.
Have fun mate. I wish i was in a position to do something similar
Cheers
Dan




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