Martin, first of all get rid of those widow-makers. I live in Texas and in my area the labor rate at the machinshop is $60.00 per hour. a 5-7 hundred dollar O/H is way low. If you remove and install the engine (your self) and have the engine done you are gonna spend $1400.00 for a good job then you will probably need a clutch, oil, water pump,and radiator rod job, and antifreeze, maybe belts and hoses, and an engine support. So you may want to scope out your costs a little closer before you start.
But great to have you here, these guys and gals have been very helpfull to me and I do this for a living. Good luck keep us posted.