After agonizing for 12 hours, Sandi and I decided to continue on with the engine overhaul. We have enough invested in it, it doesn't make sense to scrap it and buy new. We are moving the seminar date to late September to give us more time to save some $$. Hopefully everything else will come back OK.
If you are still building and haven't made an engine choice... well, go with one of the new kit engines. Unless you get an engine for free (Mike S!), it isn't worth it. If you can find a LOCAL engine with known time/condition that has been running, you could do OK. I wouldn't touch another engine with a 10 ft pole that I didn't know every detail about and who was selling it. Trust me.. that is a $7,500 piece of advice.