One thing you haven't told us is just what it is you have to work with. Is the 500 a complete bike with a trashed engine? Do you have all of the rest, like wheels, airbox and handlebars? If so, than the truth is you'd spend far less time and treasure rebuilding the 500 than you would have to shell out trying to stuff a 750 motor into the 500 frame. It would be like trying to fit a Boss 302 engine into a VW Bug... It can be done, but at what cost?
Sorry folks aren't giving you the answers you want to hear, but facts are facts and no amount of wishing is going to change that. If I were you, I'd sell the 750 engine and concentrate on getting the 500 up and running. That way you'll have a running bike rather than a cluster f*ck you could be messing with for years to come.
JMHO