That's exactly what happened to me, except I got the motor out of there before the knock turned into a spun bearing.
SHO Shop charges $1400 for their "prepped" block, then you have to pay someone to rebuild your motor (or do it yourself). Better options exist. Brad Noon, Terry Haines, junkyard engine, rebuild engine. At least if you get a junk/rebuild engine you are only paying for out & in, instead of complete disassembly along with the out & in.
