I know my username is a problem... Not Frank06, but Franko6. Not Zero, but an alpha 'o'.
By the numbers, there is no way a new cam and lifters is going to fix this problem. The lifter bore is repairable. The keepers are ruined in that worst bore. The other bore is scratched, but not worth installing a sleeve. It just got whacked by debris from the intake lifter pieces. That bore will be fine.
Now, that you already bought a cam a lifter set, I will tell you, if I rebuild the head, I have right of rejection on parts. We find people are sending us either 'white box' parts or parts that have been modified, like a set of lifters that have been nitrided, aftermarket. We looked at the lifter itself, and it's what I'd call 'making a silk purse out of a sow's ear'. We have seen those lifters before. The Chinese version of a INA lifter; we are not doing that.
WildChild80, thank you for the kudos, but I might add that 'cheap' is not a part of our vocabulary. We prefer 'quality'. We have the reputation for getting it right. We may not be perfect, but we work toward that goal. Reputation is important to me. But when we go up against a Spanish cylinder head, I think I'd rather have a cylinder head with 300,000 miles repaired than a brand-new AMC. I think it is fair to say the competition does not build with the same life expectancy that we do.
In my opinion, paying somewhere near $900 for an aftermarket cylinder head, when we repair for usually $650, including cam and lifter set, I'm inclined to think people use our company to save money. And, we have a phenomenal life expectancy, because, quite honestly, we build them better than original.
So, if we were to build your cylinder head and then, provide all the parts to reinstall the cylinder head onto the car (this way we confirm there are no questionable parts installed), we increase our 1-year, unlimited miles warranty to 2-years, unlimited. Most people see we not only provide the good service, but also quality parts; no exceptions.
Also, WildChild80, although we agree the oil pan should be removed and besides checking for debris, I would also be checking for the condition of the oil pump and rod bearings, at least. At 300k+ miles, it would be reasonable to look. Even if the #4 bottom bearing is perfectly good, we prefer to replace the #4 lower bearing with a new slotted bearing, or the set is 4 solid and 6 slotted bearings, with the 'extra' bearing going into the #4 upper and lower position. This is a mistake, in my opinion, that VW refuses to change, when several aftermarket bearing companies know, if your increase oiling to the #3 rod, it lasts longer. TSI, FSI and TDI's are subject to this failure and the slotted main bearing is the very simple fix.
As for the oil pan removal, WildChild80, I have to disagree with you about difficulty removing it. The automatics are easy, but the in the manual, you have to use the slot in the back of the flywheel to align with the two rear main seal screws with the flywheel slot, one at a time, to easily access the two oil pan screws in the rear main seal. We use a 1/4 x 6" wobble extension with a 10mm socket to remove screws and a 6" long 3/8" drive 5mm ball socket allen the reinstall those two buggers... They go in at an odd angle and with the ball socket, the screw sticks onto the socket well and you can easily hand thread the screws in without damaging the brass threads of the rear main seal. Tighten no screw until all are started.
There is one exception we know for the manual flywheel and that is a Eurospec, which has no slot and also has a square shoulder on the engine side, instead of the Sachs flywheels which have a bevel. The bevel allows you access to the rear main seal oil pan screws. With the Eurospec, we have to grind a relief in the flywheel to get the oil pan off. Then, on the opposite side of the flywheel, 180 degrees, and made an equaling balance cut, so as best we could do it, the flywheel would remain balanced. We modified that flywheel before we realized how poorly the Eurospec flywheels were balanced. As far as I can tell, the Eurospec flywheels are not balanced at all. One we removed last year, we got balanced and it was 12.4 grams off. They should be neutral balanced.
Genesis, What we say here about that cylinder head... "It's just another day at the office." We fix that damage by boring out the damage,pressing in an aluminum sleeve, welding it into place and then reboring for a pin fit to the cam follower. We have repaired hundreds of cylinder heads like that. Our success rate has been excellent. We have seen two failures for a lifter bore repair. One was our fault and we fixed it and changed protocol. The other ran out of oil...