Whoa!!

I have a very similiar delimma! I also have a 1994 Honda Accord with 201,000 miles, and the radio doesn't work, either! I put alot of money into it over the last year - new timing belt, new starter, new radiator fans, new tires. But I absolutely LOVE my car - I bought it new, and it has been very faithful and reliable for many years, and I even took it from NJ to Disney three times in the last seven months!
But my car's oil light started coming on, as apparently it is now burning oil inside the engine. I took it to two mechanics and both said it can't be fixed, you have to get a new engine block and the car isn't worth it.

Funny thing is, the car still runs absolutely fine, and I am still driving it, and keeping an eye on the oil level. But a mechanic at my dealer also expressed interest in buying it, for about $500. The skeptic in me almost wonders if anything is really *that* wrong, and these mechanics are taking avantage of a solo female, but what can I do?
I did make the decision that I needed a reliable car, so I did just buy a newer Honda, which I love, too!

But I may just keep the old Accord until it just dies, or if it fails inspection (which fortunately doesn't come up until November). I am not sure what value it truly has, so I'll think about it for awhile.
To the OP - probably a new car is on the horizon. Hope you find the perfect one!