Just to follow up since I know everyone is worried about how this turns out....
Motor is going to be torn down to bare block and goes to the machine shop.
Will use a timesert and a combination of grease on a bit, proper jig, then cleaning out the passage, for just a few bucks more than what I would spend on the timesert kit.
That way if we find more holes that need repair the cost only goes up a little.
And I will sleep better.