Yea gets a wet sleeve. No biggy if the machinist has any idea in the world what he is doing. When I was in High School I helped dannhy killcup (you Nor westerners should know of whom I speak) wet sleeve all 6 holes in a GM 250 block. It was a successfull effort to make big inches from a worn inline 6.
I have seen way worse on a salt water marine block. The owner had all 8 holes sleeved. $100.00 per hole. Your block appears as though it could easily be saved with a sleeve.
Way back in the late 50's my partners and I wet sleeved all 6 holes on our 324 inch Fuel Jimmie. Worked fine till a clutch blew and sawed the bell housing OFF!
Ok - cool. Do they use a sealer to keep the water from getting between the sleeve & cyl wall? Also, there is a crack that goes down the cylinder. Do they address that before the sleeve goes in (like stop-drill it or something)?
They will no doubt cut the old cylinder wall completely out. Should have a step cut up near the top of the cylinder and the sleve should have a souolder on it to keep it from settling and yes some sealer of some sort will probably be used to keep the water out of the crank case.
It will register in the step cut on the top, and the press fit will come from the lower block area underneath the water jacket. After its pressed in, the block will be decked.
OK, got it. So the deck area & lower cyl holds it. I was thinking I might need to put some block fill in it (like 1/2 street fill)
'Sleeve it should be fine. Coat the sleeve and bore with KD block sealer and drive it home.' Dude, slow down and read that SUNBEAM answered your question.
Stop drilling the crack is recomened. As to cutting out the old cylinder wall I like to leave as much as possible. It helps to keep the deck ridged. Most repair sleeves aren't so thick that you will remove all the old wall. When you bore for a sleeve you do not go all the way out the bottom you leave a lip at the bottom and the sleeve is driven to the lip. Then the excess sticking out the top is trimmed flush with the deck.
Yep, it's finding a machinist that knows what he is doing and how to do it right. It cost me 107 bucks to sleeve one hole in a 350 Chevy block 30 years ago when the going price for a good four bolt block was 100 bucks and I don't know what they would charge now. I ran that engine for a lot of miles in my 48, sold it to a friend and helped him put a re-ring kit in it and I still see the truck he put it in every once in a while.