I called Diamondback again, they said they don't do any machine work themselves, they told me to call
http://www.waynecalvertengines.com/ in Denton, which is closer to Dallas.
I called and spoke to Calvert, this is what they quoted, I think they sould like reasonable prices.
$145.00 Bore and Hone up to .040 over w/torque plate
$ 8.00 Hone lifter bores
$110.00 Deck block surface
$115.00 Align-hone Mains
$ 85.00 Strip & Degrease block, install new plugs & cam bearings
$ 35.00 New Freeze plugs & Cam bearings
$ 70.00 Polish crank journals
$195.00 Balance Rotating assy