daveyd: Just to be sure your ealize, the puck leak and the compression are 2 different unrelated items.
As to boring costs, if you're going 850, wouldn't you just send it to CycleX or APE and let them do all the mahining? Haven't checked but they'd do a package deal.
But if its a time/budget problem, I'd strip the top end, clean it (glass bead, etc as needed), lap the valves, replace all gaskets and seals, dingleberry hone the cylinders, re ring it stock and go on your merry way. Cheap and effective.