The machine work on my block and balancing the rotating assembly was $650. That was cleaning the block, boring the cylinders, line hoing the mains, and torque plate honing the cylinders, along with balancing. Maybe $1000 in machine work and assembly labor.
If you're getting forged internals why not go with the 2.6? And I'd order a built shortblock with about 9:1 compression, forged crank, forged H beam rods, and forged pistons. Try to go with stuff like Kellog, diamond, manley... I'd stay away from probe
After that if you want to get your heads ported and polished it'd be a good idea, and throw in some custom grind cams.