Struts & brake question

Hi,
I have a 97 civic dx. I went for an oil change and the mechanic told me I need new struts because the present ones are worn due to mileage (120K). Now I performed the standard test for struts written on many sites: Press the car down at each end and release it. It comes back up, but does not oscillate any further. But when I brake hard suddenly even while driving slowly, the car oscillates front and back a full two times. Is this bad? What effect do worn out struts have, other than comfort. The mechanic said it would cost $800 to replace all 4 struts + $60 alignment cost. Is it so costly to replace them? I wasn't planning to spend $900 on a ~$4000 car.

Also, one of my brakes makes a pulsating grinding noise. I was pretty convinced the sound was from the back. But the mechanic told me it is my cheap front brake rotors. How can I test which brake (front or back, right or left?) is causing the noise? I think the car also pulsates a bit while braking.

pull the wheel off and actually look at the brakes. u'll be able to see if the rotors r causing the problem. grinding noise sounds like a pad has worn all the way down, or the car has sat for a while and built up rust on the rotor. either way it's time for a brake job.
as for the shocks, u don't just press down on the car and let go, u bounce it a few times then let go and count the oscilations. good shocks take 1 and a half to settle the car. 2 isn't really far outta spec. while u'r lookin at the brakes, take a look at the shocks and see if there is any oil leaking out the tops of the tubes. if so then u'll need to replace them.

The mechanic told me the rotor are fairly new (only 30% worn). He told me it needs to be "resurfaced". Ya the noise started after I parked the car for a month in December. But I must have driven some 500 miles after that. As for the struts, he did not say anything about any leaks, just that it is time to replace them due to age. (But he reminds me to change the timing belt too every time. But that was done only 30K miles before). I don't see any signs of leak either. at least not at the front struts, with the wheels turned to reveal them.

pull the wheel off and actually look at the brakes. u'll be able to see if the rotors r causing the problem. grinding noise sounds like a pad has worn all the way down, or the car has sat for a while and built up rust on the rotor. either way it's time for a brake job.
as for the shocks, u don't just press down on the car and let go, u bounce it a few times then let go and count the oscilations. good shocks take 1 and a half to settle the car. 2 isn't really far outta spec. while u'r lookin at the brakes, take a look at the shocks and see if there is any oil leaking out the tops of the tubes. if so then u'll need to replace them.