I know you said new bore and sleeves would be upward of $1000. Did that include the pistons and rings?
A more important question, how much would it cost you to just rebore to .040 and no sleeves? I would think the sleeving adds considerable expense. If the boring would only be a couple hundred$ and then you could go with an .040 kit I think you would have much better results and could last a long time. You still might want to check the bearings with plastigage just to see whats going on. Did you have good oil pressure before and after your rebuild attempt? I'm not a mechanic, only worked on a few engines like yourself so hopefully the experts here can give better comment and suggestion.
Hi Harold. The shop didn't break down the cost for me. It's was a quick telephone conversation with just a general idea what i was looking for. They said plus minus without seeing the block. It did not include piston and rings though. A .040 over would require new pistons and rings etc. The problem with the .040 over is that top end of cylinder 2 and 3 are already between 4.2400 and 4.2450 so boring .040 wouldn't get me perfect cylinders. If I went in for a bore, I would go for sleeves to bring me back to standard bore of 4.2 and could reuse the new pistons I already have.
I wasn't sure what Plastigage was but will google it and see if that is something I can do myself. As far as oil pressure all I have is a oil light that comes on. I always made sure there was proper amount of oil and would check it often. Never ran it out of oil. Thanks for postings. Matt