Good news, bad news.
Good news: had two of my buddy's come by, one owns an Indy shop in Philly.. The other owns an Indy shop right near my house but he was a Toyota master tech before he opened it. Both looked at the motor and the heads, they looked at the previous "mechanic's" write up and neither think there is a bottom end issue.
So, plan was to bolt the heads back on, compression test the engine and go from there. If it was okay, I was going to send the heads out for some freshening up and send the injectors to Witch Hunter for their magic tough.
Bad news: only 1 of the head gaskets came back with the parts pile. And the timing belt and head bolts are missing too. Not the end of the world but I was planning on bolting it back together with the old parts just to compression test it. Now I'm out $119 for a head gasket, timing belt and head bolt set. But, I'm still optimistic that the motor is good. Fingers crossed.