I would not machine the block atall. Turn the crank and rebearing or if you have your old crank polish it and rebearing.
The single knocking rod would need replacing simply because that is cheaper than reconditioning.
I helped a guy who was out of work and on a TIGHT budget do this last winter.
Crank polished is like $35 grinding is like 110+
I have sold individual rods with piston for $20 shipped, put your rings on it
The stock Mahle bearings are like $80
Would put a $3 higher pressure oil pump relief spring in it.
$51 for the felpro conversion gasket set, basically the bottomened and timing cover
$20 intake set
$45 for a set of Victor Rienz .026 gaskets, like the Mr. Gasket but without the bad packaging, these will get you some compression
$15 for a set of plugs
Throw in a set of wires and I still think that comes in under $400.
You will not get your money back out of an engine build.