Sometimes it is easier to use the search functionality of the forum versus scanning through multiple pages of posts.

Most importantly with the machine work, know for sure and without any doubts the shop knows what they are doing with a FE block.

In the past few years, with older machinists retiring from the shops in my area, I've had a few "I almost got what I asked for" and zero "I got exactly what I asked for" experiences with work done on a couple FE blocks.  That is even after making a best effort before hand to ensure the shop could do what I wanted.  Even though the answers I got were "yes", in hindsight, they were obviously blowing smoke to get some business.

"Yes we have torque plates for that block" (they didn't) and "Yes we are familiar with FE blocks" (rear cam bearing plug installed backwards) are just a couple examples.

The most frustrating was my experience with wanting to have the cylinder work done with a torque plate.  They told me they had a torque plate (as noted above and yes, I called before sending the block to them to verify), I sent along the ARP head studs and a printed list of exactly what I wanted done to the block.  When I say printed, I mean typed in a word processer with nice large easy to read font and printed on paper.  I figured that would alleviate any issues with not being able to read someone else's handwriting.  When I got the block back and the ARP head studs were still in their original packaging and untouched, I immediately called to inquire why they weren't used with the torque plate as per the instructions I sent.  "We don't have a torque plate for FE blocks" was the response.....   *sigh*

Anyway, I think you get the idea.   

Just curious what your thoughts are on the 160-180 being too cool.

Reference the chart in this post and decide for yourself.  Seems to me that the decision would come down to "How will I be running this engine?".

If you know someone that has a TIG welder and they have a good understanding of what you need done, that might be an option.  Probably the most amount of work but it would definitely be a permanent solution.

go ahead, burn away, but $1,000 for a motor and transmission, about another $1,500 for the rest, and get likely another 75K out of that used motor, have overdrive, and fuel injection.........

No desire to burn but you have got to tell me where you are getting an engine and transmission for $1k.  Around my parts, the motor alone is $1k+ and transmissions are apparently made of platinum thanks to salvage yard conglomerates. 

Can you use use a 1/4 drive socket?

IIRC, no since the hole wasn't quite large enough for a 1/4 drive socket either.  I have one other block that hasn't been touched.  I would have to check the hole on it to be certain though.

They make extended length taps so that you don’t have to do that.  I have a nice sharp 6” 1/4NPT tap.

Understood on the extended length taps.  As the op had noted, they are more $$ and not as easy to obtain from a local store which led me to enlarging the hole since I had everything on hand to do that. I also liked the idea of being able to use a hex socket for removal and installation.  I'll run with changing the size of the hole is of no consequence since nobody has stated otherwise.

You may not need to drill all the way threw if, you use a pipe reamer. It tapers the hole the proper length for the thread.

I'll second that on using a reamer.  While not necessary in most instances with the stock FE blocks, it does make the job easier when tapping the holes.  Just goes "smoother".  I also found (with the holes by the lifter bores that get plugged or piped) that a reamer lets you know immediately if you are dealing with an overly large hole to begin with.