This particular shop does heads and cylinders every day, and in 2006 I 'taught' them how to do Honda heads in my particular special way (i.e., always minimum ID clearances). They are a great shop and have been for a long, long time: the owner is just 11 years younger than me and never "screws" anyone, either: I've seen them close the shop for a week once when a new employee did something wrong to an engine, and the entire shop stopped what they were doing and rebuilt the whole thing themselves (dragster stuff) to go on to win the NHRA class meet that Fall - that's how straight they are.
I've seen the ID of the guides: one of the intake side actually has grooves cut in it from the chips getting caught (despite coolant flow) during the sizing bore, and that was against the flow of coolant to boot. He bores cast iron to (-0.0002") to (-0.0004") less than final size and then either runs a honing tool to final, or bore to final, depending on how things look. It was the last one bored: by then the boring bit was also magnetized enough to hold up a 4x10mm screw, as a test (he also has a demagnetizer, which works real well on keys, too!). That has never happened before that he can remember, and they do heads all day long. He has only done one other 750 head for me with iron guides (I normally use bronze) some years ago, and it was fine, with close tolerances and no problems in bore finish. This whole thing is most unusual.
I'll contact Yamiya and report what they think about it.