Yep, that is a bad sonic test, particularly if you're not used to looking at FE block sonic tests. For an FE block, it's not too unusual though. Not a problem with a good offset bore job and some semi-custom pistons, as has been pointed out here.
Offset boring though may not be nearly as simple as it sounds. The machine shop has to have the right equipment. Many shops are still using old style, three finger air lock boring bars like a Rottler F2, or a Kwick-Way, etc. While the machine shop will tell you they can offset bore a block with these, they really can't, no mater what the machinist believes. He can be very careful in setting up the boring bar, but when you release the air lock, those fingers will move the bar "just a little bit". It's just not possible to be highly accurate with these machines, and there is no way for the machinist to verify the accuracy. Nor can they be used to repeat a cut in the same bore, say doing a small initial cut, then a slightly larger one. They are simply not accurate enough to do so.
To accurately bore a block, a CNC controlled boring bar is needed. It doesn't have to be the latest and greatest 5 axis CNC Multi-purpose machine, an older Rottler CNC F5 can do the job. You can check out YouTube for videos of an F5, or a Rottler F69, an RMC V30, a Centroid, etc., to get an idea of the differences. Not only can you set a CNC bar to offset the bore any amount you desire, but you can use it to creep up on a minimum oversize bore as well. For example, wear ridges are typically heavier to one side of the bore. If you bore the cylinder on center, it may easily take .030" or more to clean the cylinder. But, if you offset the bore center towards the worst part of the ridge by say .005", and then do a small .010" first cut, you can evaluate the result, and maybe make a small correction on a next cut. We've often been able to keep a badly worn block at only a .030" oversize , when other shops have said they had to go .040" or .060" in order to clean the bore. For their old style equipment, they are probably right.
So when talking to a machine shop about offset boring your block, find out what type of equipment they are using. You don't need to question their abilities, or denigrate their equipment, but simply inform yourself as to their capabilities so that you can make an informed decision.
Rob McQuarie
Blue Oval Performance