So I spoke to Jim Driscoll at Lawrence Crankshaft in Massachusetts, about 20 min. from home. This shop works on everything, from Cat's, to Detroit's, Chevy, Ford, you name it. He builds the pro stock race engines for my neighbor, any way.... I brought the Case 148 engine to him to take a look. We ended up shaving the main caps down and line boring the block. Unfortunately the damage to the center journal was too bad for this repair. I had one more option, Jim can pin a shim into the journal and then line bore it again. He has done this for some big diesel engines and he has never had a problem, but it's a $500 repair.
So I decided to look for a used engine for parts. I ended up getting lucky, I found a complete engine, same G1000 block for $500 bucks. Thanks google! I had picked up a new crank, cam, and rebuild kit so away we go. This is the replacement engine that was pulled down at the engine shop.