[JFC10]

1.wow this is a great forum, thanks everyone
2. Using a borrowed boriscope, I couldn't find any signs of piston/valve contact, the coating of carbon isnt scratched or disturbed, and I can't tell if the valves are bent either...

My $500 Craigslist special plan is still probably the cheapest, safest option it sounds like.
As for the Goodwrench engines, I would definitely consider one, I've swapped one into a suburban with no issues in the past... But if I have $1500 bucks to drop on an engine, you better believe it's going towards discount speed parts to build a screamer.
I'm about to pull the heads, the suspense is killing me.
I've always had aspirations of porting some junkyard vortec heads and using them on something I rebuilt. Im under the impression aftermarket heads will make more power per dollar depending on what you get... Now I'm just rambling...
It pains my GM purist soul to sell this turd without it's matching numbers block, but the world will go on.

One last burning question,
What are some opinions (and facts) about slapping on new head gaskets without any machine work? I realize they will never last in the long term, at least on a iron V8, but has anyone tried it with success? Mabye in your foolish younger years? Inquiring minds want to know. I have a feeling it happens more than most would like to admit...
Considering the condition of what I usually find myself working on, this is important information.

Thanks again to those who responded, I'd rather have many other facts and opinions than be left with only my own.