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Y-blocks have some peculiarities that not every rebuilder is familiar with. I would hang out a bit in the Y-block Forum, and ask questions and for recommendations. There may well be, in your area, a rebuilder that knows, likes, and is skilled at rebuilding them. Good luck.
Check out reman engines purchased through AutoZone.
I was looking at their AMC 304 V-8 reman's and my guess is they come with a warranty too if certain installation requirements are met.
I don't know how much oil your 292 is consuming, but I ran a turbo diesel for 15-years which used 1-quart per 350-miles consistently w/ no change.
A quart of oil is much less expensive than fuel.
I had a '61 with a 292, when I was a starving student. It started running ruff and missing. The timing chain was super stretched out. Iput a new chain and gears in and a new set of rings and it was good to go. Have tried doing a leak down test to see if the problem is due more to rings or worn valves and valve seals?