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You might want to find a better engine to start with. If you were closer, it would not be a problem getting a standard bore block. A .020 cut on the crank is no big deal, I do not think they were hardened from the factory. You might want to post A "wanted ad" for a big block near you.
The red arrow needle and seat are probably original. Just use the new ones and set your float and drop dimensions and you should be good. I do not know if the originals are available.