I've been robbed to many times to be able to recommend anything but a factory rebuild If you end up needing a rebuild have the factory do it Those three simple things will typically tell you everything you need to know, that and check the oil and coolant. Keep it simple though if your not familiar with a stethoscope and just listen to the valve train and the timing chain. Most guys just listen to the valves and for anything ugly in the timing chain area. If you want to get tricky with it look down low on the engine block with it and you can hear the main bearings spinning, same deal, if they all sound similar your good to go but thats just if you feel like being anal about it. Any major difference between cylinders is a problem, if they all sound similar your probably looking at a good engine. Its also pretty much idiot proof, just put the end of it onto the motor and work your way around in a systematic way so you get a good listen to several areas of each cylinder. A stethoscope, yup a stethoscope, you would be surprised how things sound threw (through ?) one. Oil pressure from both ends of the engine if at all possible, you can typically pick up a gauge for $5 from a salvage yard.
Pressure test, its easy, pretty much idiot proof actually and you can rent the tool. I look at three things when I am looking at an engine and I want to find out if its worth spending more on an actual mechanic.