Bummer! I normally agree on not buying the pistons or bearings before knowing what the clean up work on the block and crank are, unfortunately tlowe's pistons only come in 0.040" so you are kind of forced to find an acceptable block to get the good priced pistons.
I plan on buying those same pistons eventually, but I have one block that is 0.030" over and one standard bore block to work with (Pontiac L6's).
I would think you'd be able to find a serviceable bare block for under $500. In the mean time, you could always do what I did on my OHC, modify and clean up the head some, slam the bottom end back together, reusing everything, and get your car running with the turbo system (only running 4-6psi) while you are looking for a good block to use. Then after you assemble the good short block you can make a weekend out of pulling the engine, swapping heads, and putting the good engine back into the car. Then turn up the boost! =D
