Heffay,
I assumed he wanted to get back on the road as fast as possible before the snow forced hibernation. While the old motor can be fixed, most likely, checking and replacing the valves and guides, searching for metal in the sump, and fishing another cam chain into what he has now, is going to take someone inexperienced a good bit of time and a couple hundred dollars in parts. I'd certainly check over the yard engine carefully and at least do a compression check before the changeover. But, if the yard offers some garantee that it's a good engine, changing it out is the fastest way to get going. Then, if he wants to fix the toasted one, he can do that over winter, where he can take his time, and get winter pricing on parts off ebay.
I've never seen a Cb550 with a broken cam chain. Danged things are strong. Probably something wrong with the tensioner, I expect.
Cheers,