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It is hard to say without taking it apart, but it definately sounds like little or no compression. I would check the compression first, but from what you are saying, it is probably a warped head which means headgasket time. It could also be a burned valve or piston causing lack of compression.
The only thing you can use from a neon is the block. The head is reversed. If you get a neon block, make sure it is a first generation. The DOHC motors have the same compression as us, the SOHC is lower. You can also use a whole motor from an 95 - 99 Avenger/Sebring coupe (not convertible), or a 95-99 eclipse/talon non turbo. You could theoretically go for a 2.4 chrysler from neons/stratus sedan, but you would have to use your head with it, and do some custom work to get it to run right. You would need a custom passenger side motor mount. -Nate
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