Steve, I talked with several folks and the general feeling is that the helicoil issue should not be a problem as long as they are correctly installed and they hold torque correctly. I would not throw that block away unless they can verify that there is no clamping force left.
Having said that, I think the only reasonable course of action to take would be for me to refund you're money. I learned the hard way on this one, but It was my fault for not doing my homework and checking the numbers like I should have. I will be out there in a few weeks and I can pick up all the parts that went with the package. I'm sorry this thing turned out to be basket case and delayed your project, but I won't feel right on this unless you were getting what I indicated to you was for sale. As far as the rock goes, that one's a mystery to me. The motor did sit in my garage for a while with the manifold off, but I didn't see it when I put the the manifold back on. I even looked to check the cam for obvious signs of being eaten up and that should have stood out like a sore thumb. The ride out might have shaken it loose or something.
Let me know what your feeling is, but by your posts I get the feeling that you feel you got screwed and I don't want that. This stuff is costly enough as it is without spending money on bad parts........ From now on, I'll be taking stuff to my machine shop to be verified before this stuff gets sold. Starting a new business in this industry, I realize that your rep is only as good as your word, and I know that some folks in the past have made the mistake of thinking that won't catch up to them, it will and always does......... Jason