crank work is a must. Anybody rebuilding an engine should be trueing and welding the crank. Since its apart to true, might as well replace the mains. Since its that far apart, STROKE IT. you'll be pleased. Not stroking mine is the one greatest mistake I've made. I would suggest spending all money's needed to get the bottom end done to perfection now, as from there forward you can work on the top as more money allows.

 

dfischer is right about taking care of the bottom end first then build from there. Of course, you need to decide if you want to stroke it while you have the bottom apart.

$1195 seems high and that machine ain't going to make 65 HP without porting - If you're getting it ported too for that price then it seems OK but I'm certain a knowledgeable shop would insist on crank work to handle the HP.