How firm a foundation?

I'd rather be blogging about something else, but this is the issue that has been consuming our lives this week. Anyone ever had to repair a cracked foundation? We knew we had a small but long crack that leaked water into the laundry room if we put the sprinklers too close to the house, but the laundry room is unfinished and there is a drain in the floor, so we hadn't worried about it too much (other than keeping the sprinklers at a safe distance). At some point while we were in Idaho for four days, the tubing up to the swamp cooler on the roof popped off and watered the back lawn for who knows how long, flooding not just the laundry room but parts of the bathroom and bedroom too. (Note to selves and anyone else with a swamp cooler--turn the water to the swamp cooler OFF! if you are going to be out of the house for any extended period of time.) Turns out we have at least two cracks that let all that water in. I sucked a couple gallons of water out of the bedroom carpet with my steam cleaner before deciding just to rip it out completely. We had planned to replace it at some point anyway. Now we are debating the merits of digging out the foundation from the outside and patching with an asphalt emulsion ourselves vs. hiring a foundation repair company to fill the cracks from the inside with polyurethane for $865. At least the estimate was free. Anyone have any expertise, experience, or suggestions on this one? And once the leaks are taken care of, then we have to replace the carpet and some drywall, plus we are considering remodeling the bathroom while we're at it. As long as we are taking on home improvement projects, we might as well, right? So much for starting on our garage this summer.