I've never heard of a machine shop that didn't have hot tanking the block as part of their machining process, the one's that we used hot tanked the block before the machine work was done and then again afterwards before they would install the cam bearings and freeze plugs. I think that the bearings look good. Something else that people fail to do is to clean up the oil pump pick up tube and the oil pan. Checking the oil pump clearances is a good idea as well as the distance between the oil pump pick up tube and the bottom of the pan. I'm assuming that you replaced the rings too? If you did all this and didn't clean the block by either hot tanking or power washing the block, the rebuild won't last long. Bores have to be clean in order to get the rings to seat and for ring longevity. Believe me, taking short cuts when rebuilding a engine always costs more money in the long run. Cheaper for the most part is not good either, I'm not saying it's not good to shop around for parts and machine work, it's cutting corners.
