Well Hemicar laid that out pretty well but let me add a few updates. YES blocks have started shipping to both new order and back ordered customers. Ray, Tim, and myself have all gotten them, as well as several others. I know that Tim and myself both arrange our own freight so we know exactly and to who the blocks are shipping. I am shipping one tomorrow to a back order deal in Kentucky.
Yes the plan is to eventually have blocks available for immediate shipping. That will take some time to get there.
The last thing anyone needed or wanted was to send out blocks with any quality issues after all the wait time. The QC on these were tough and revealed some casting issues. Keep in mind that these blocks are pressure tested 3 times during production (One is to 125psi).
I will get into the casting issue in a moment. Darren turned to Bob Tarozzi who worked with Hoover and Keith on the blocks way back in the 70s. He also brought in Eric Hansen from Stage V for consulting on the issue. The problem has been addressed and it was mostly due to some technical issues with the pouring of the metal. The failure rate was to high on the QC inspections causing a high cull rate. Order 10 get 5 that pass. Not good. Thanks to these guys those problems have been eliminated.
It appears now that due to EPA mandate the resin used inside the molds was changed to a new product that would create less gassing when the molten aluminum hit the molds. This is not a problem isolated to KB by any means. Mercury Marine just canned an aluminum block they have been making for years that they could not get fixed.The hemi block has been difficult from day one and in particular the large bore ones due to the pushrod angles and the design of the block. Anyone who has seen or built a big bore hemi can relate.
There is no one on this board or any other that cannot wait for all this drama to be behind us and blocks are readily available in a timely manner. Think of ALL of the block drama the Mopar guys have had to put up with. Iron hemis from Mopar anyone? There have been others. NOT an easy gig to be sure. Mopar guys have always had to do things the hard way. Why do we keep banging our heads on the wall? Because it feels really nice when you stop.

There were numerous other issues that had to be addressed and still are.
Yes there is a Gen III on the drawing board but I can assure you that the Gen 2 hemi and wedge blocks are first in line. All other production of gear drives, oil pumps, ETC have been halted to spend all efforts on block production.
Anyone wanting more information on the blocks can Call or email Tim Banning at FHO, Ray at Ray Barton race engines or me at Marsh performance. None of us are hard to find. There is a new very good website being built and there are numerous other improvements coming as soon as possible.
TO the customers with Money on the table. I feel your pain as mine is there as well as Tim, Ray, Darrens. No one in that list has made one dime getting this going.
As far as stock piling blocks that is tough. The problem is (or was) all of the custom machining that was requested. Low deck, tall deck, hemi, wedge, solid blocks, raised cam, spread lifters bla bla bla.
One of the first things that happened was exactly what some of you suggested. Standardize production and they even have standard features at NO extra charge. Things like raised cams and oil to the lifters are no extra charge. This was done to get blocks OUT the door as quickly as possible. We can work with some custom requests AFTER we get the line moving again.
The new castings are arriving at KB in large quantity. The changes that were made are working well already. This has made the foundry much happier pouring them as they are seeing more production pass QC which helps their bottom line. I am sure more production issues will present themselves and they will be dealt with the best we know how. There are now people in place that can be called and issues will not be allowed to become roadblocks.
Todd
@Marsh Performance