I thought that the "banana republic" style palm grease at a shop would help, but apparently emissions testing is such a cash cow (and these guys get "stung" often enough) that its not worth the $20 to them. Anyway, in NY at least the cut-off is 20 years. Funnily though, I have "friends" who failed their test and have never heard a thing about it from the powers-that-be... By the way, assuming that the head isn't frozen & the block is okay, I've seen that vintage of M30 engine go for $400 bucks or so, so if you're okay doing a bit of wrenching you're almost assured of getting your $350 back.
Another consideration is that if those are in fact TRX wheels, you could have a hell of a time getting tires that fit. Flip side is that there is a growing demand it seems for good condition TRX wheels...