Neil,
I am just finishing up the rebuild on my '40 228. I purchased all my parts through Egge in California. Parts cost almost $1300 but did not include a new cam or lifters. I had my machine shop rebuild the head, bore the cylanders, turn the crank and ballance the flywheel-crank-rods-pistons/cost $1100. I had some problems with the main bearings from Egge. They were not correct(the mains are stepped so none are the same)and so I returned the block and bearings to the machine shop and they ordered the correct ones and installed them for me. I sent the wrong bearing caps back to egge and although they claimed they were the correct ones they did agree to refund the cost of the bearings and pay for that portion of the machine shop bill (only $65). Although I was not happy with the problem I was pleased with Egg's responce. Long story-short answer / your cost sounds about right. I believe I will have +- $3500 into the engine after all new part, maybe more, it aint cheap but it is fun. G. Lee