The process I've gone through on all of my grimy engine partys so far...

I dropped off my engine at the machine shop this morning,  they told me that I may have screwed up the block by reaming it out, he said I reamed out the "original alignment" and would have to track down a "deck plate" to rebore the block into alimentary. he said he might be able to bore it in @ .060 over. 
He's going to do a valve job, (replace guides, seats) cleanup (hot tank) and overbore for around $350 which sounds pretty reasonable to me...