My engine (a 235, but I think for comparison this should be pretty close) is at the machine shop right now. The block is getting boiled, the head magnafluxed and the valves reseated. I'm replacing the cam, the timing gears, having the cylinders honed with new rings and new lifters. I'm also replacing the water pump, putting electronic ignition with new cap, wires and plugs. I'm also adding an alternator and electric fuel pump. Cost of parts and machining - right about $1500. I imagine the labor would double that if my brother wasn't doing (or supervising me as the case may be) all the work on it (except the machining). By the way, we struck a deal with the machine shop to get the work done a bit cheaper by having them do all the machine work and buying all parts from them. This way the same guy's doing everything and if something goes wrong we know where to go. Hope that helps.
In short, $3000 is no where near unreasonable. If you're going to bore it out, replace pistons, valves, rockers, etc, etc, etc.... I suppose it could cost much more.
