Well I dont think boring out an engine is all that much money. If I were you, and wanted to keep a V6, I would go and get it bored .060 and that means you have to buy new pistons and rings:
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&category=33623&item=7961288634&rd=1 Like these ones for $90 including shipping and handeling. They say they are for a 350 but the pistons and rings are the same, and you will have two extra ones.

And you will need to have the machine shop put the pistons on your rods which are about $6 a piston.
Dont worry about feeling like an idiot by buying a bad block, because I have done the same thing when I paid $140 for a supposeably really nice 350 with 4 bolt mains, and I got it down to change the cam bearings the guy magnifulxed it too and found a crack half way through the lifter valley. So I got ripped off.

But I did get $10 from the scrap metal yard.
