I finally heard back from the machine shop. All the machine work that was done is good. The bore, balance, hone, all that. They recommend decking the block and surfacing the heads and redoing the valve job. The pistons are good quality but the rings are low bid. The machinist said they used mismatched main and rod bearings as if they just used left over parts from other jobs.
Basically this engine was a good start and could have been run as is.
I got it for $800 so I think I got a good deal. Just have to tweek it a bit now.