It's hard to find a trustworthy machine shop nowadays. In my area, anyhow. If you don't tell the machinist exactly what you want done, maybe even write it down for them, it won't be done right. I've heard alot of horror stories from around here, guides pressed in crooked, completely rebuilding heads without vating(sp) or new freeze plugs. GOOD LUCK on finding a machinist that'll do what they say they're going to do. Like someone mentioned above, nowadays people don't take pride in their work, it's all about the mighty dollar. I'M NOT SAYING EVERY MACHINIST IS LIKE THAT, so nobody get their panties in a wad.
Looks like that block might have to be .060 over, anymore than that you might have some cooling issues with a daily driver.