If it were me, I'd chalk it up to a lesson learned and move on. Whether you build one of your other blocks or start over with this one really depends on the condition of the other blocks. I would also suggest a good Magnafluxing would be money well spent before you start the machine work. When you choose a machine shop, make sure they understand what your expectations are for the finished work, and never accept anything without inspecting things first. Explain the eventual goals for the engine, and what parts you plan to use, compression ratio target, etc. I also prefer to get the same shop that does the block to do my rotating assembly, as they understand the clearances, bearing choices, etc. Very sorry to see how badly you got screwed over, but in the long run work like that will soon put them out of business.
Best of luck to you going forward.
Garry
