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Rat, the machine work sounds a bit too high for what you're getting. I got a complete longblock with flat tops, cam, lifters, springs, hardened seats, new guides, extra parts cleaned, manifolds milled, etc. for just over a grand.
As for the mufflers, if you want the most free flowing, I'd suggest Hooker Max Flows. These things flow just less than open pipes and are quite quiet until you romp on it. Then watch out...it sounds like the world is coming to an end.