I'm not sure, he said he has been a mechanic his whole life and that was just his impression when the cranked it over (never seen it on a bike, he bought it benched). If I buy an engine for $325 and then ship it.. I think i'm up there in the $$$. I asked someone I know who has shipped an engine and they said it was $250.
I guess option C is a top end / head gasket on my current engine and continue to deal with the crankcase oil leak. I hate that it leaks (always having to top off). Maybe I can reduce the leaking by 25-50% if I fix the top end leaks, though. That option starts to look more attractive when I think about $500 just to get another engine with unknown issues.