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Cylinder Heads: Crack around the valve guides

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Soaring:
Yeah, we'd like to know the outcome of the inspection the machine shop did, and what they are suggesting you do to fix the problem. 

ProjectAbby:
So you were right, those valve sleeves will have to be replaced...

The shop gave me an estimate for the block and heads.  total is like $2700.   At first, i was going to order my own master rebuild kit, but they can do it for me at about the same price.  I'm just going for a typical engine rebuild, trying to stay close to the original, not going for crazy performance or anything.  I told them I'd want them to put together the heads for me, along with installing the hard seats and cam bearings in the block etc. and i can do the rest of the assembly myself.

here's the break down:

Master Rebuild Kit - $760.00
- Pistons
- Moly rings
- rv cams and lifters
- Full gasket set
- Double roller timing
- Oil pump
- Brass freeze plugs
- Oil pump shaft
- Bronze guides for heads
- Hard exhaust seats
- Rod bolts & nuts
- Stainless valves
- Springs

Labor for block and heads - $1955.00

Block
- Thermal clean and shot peen
- Magnaflux
- Resurface block
- Bore (.060) & hone with torque plates
- Install hard seats
- R&R cam bearings
- R&R pistons and rods
- Line hone main bearing saddles
- Balance rotating assembly

Head
- Thermal clean and shot peen
- Magnaflux
-Resurface heads
- 3 angle valve job and set spring heights
- Recondition connecting rods
- Install valve guides and fit
- Clean mag. index grind crank

What do you guys think? Im gonna try to get back to them today so they can start on it.

Soaring:
I have always been one to sit down with the builder and discuss each and everything that will be done, but I am wondering about this cost.  Have you checked into the price of a crate engine built the same? 

ProjectAbby:
here's the breakdown
thermal clean block & shot peen $75.00
bore & hone block with torque plates $250.00
install hard exhaust seats for unleaded gas $120.00
r&r cam bearings $68.00
thermal clean heads & shot peen $40.00
resurface heads $70.00
clean mag regrind crankshaft $200.00
3 angle valve job & set valve & spring heights $250.00
clean mag recon rods $120.00
install bronze guide liners & fit $144.00
magnaflux block $20.00
magnaflux heads $20.00
r&r pistons on rods $78.00
balance assembly $200.00
resurface block $120.00
line hone block $180.00

total is about $2000

I may be able to skip a step or two, like surfacing....but that doesnt really bring down the price much... I havent looked into a crate engine yet....going to do that now...or Do you think for now i can give them the go on at least the thermal clean and shot peen?

Soaring:
That's about what a stock crate engine will cost you I would think.  If you have them do your own, you will at least know what you have, and can come back to them with the warranty if anything goes wrong.  But again, the price seems kinda high.  You can get an OEM rebuilt engine for less than 1,500.  Here is only one example.
http://www.hiperformer.com/featured_engines/for_289lb.html

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