They called me again today...

The story improved a little bit.

They ordered the short block, and an oil pump, (and the headlights) expecting them to arrive 'by' Wednesday morning.

He said that if everything goes well, they will have it finished by end of day Friday or Monday.

He said they wont pay for the oil, and he 'recommended' to change the timing belt but the warranty wont cover the part, just the installation. If he finds anything else thats not right, he will order those parts as needed.

Oh, and "It is suggested, but totally up to you" to get the 30k mile service done... ... for about $400.