Some good news first:

IT RUNS! No leaks, good oil pressure, compression 180-200 psi in all cylinders ...

... except one, which was zero  

Lifter was hung up in #2 cylinder, and when you inspected them all (I did not know this, but you can see to the other side through drain holes in the cylinder heads when the valve covers are off) there were several other lifters that were scored

Their engine man's diagnosis = block was probably shot peened which caused top of lifter hole to bend over a bit in places, and the original builder of the short block did not hone or check the lifter bores.

Their engine man's remedy =

1. cannot fix just by pulling the intake manifold, any metal shavings would get into the innards and cause all kinds of grief.

2. need to completely disassemble the motor, inspect lifter bores, hone if possible, might have to put in a bushing, surely will have to replace some lifters

A little more good news: everything else should be OK, even the bearings, but they will inspect all and do what is necessary to fix it.

Some more good news: they will work to get it all done by the end of the year.

So it will cost more than I planned, but at this point, I am "all in" for whatever it takes to get the car on the road.

More to come ...

Dave