RUN- - - -DO NOT WALK, TO ANOTHER MACHINIST!
This guy is about to make things horribly worse! At this point, line boring is the only reasonable solution. Be sure the machine shop that does the line-bore remembers you've got timing gears, not a chain. If they take too much material out of the block while doing the boring job, you've got a boat anchor- - - -no way to correct timing gears that are bottoming out!
Jerry